By Neanda Salvaterra and Jenny W. Hsu 

Oil prices crept up on Wednesday amid supply disruptions in Africa and renewed commitments by major oil producers to rein in production.

Brent crude, the global oil benchmark, rose 0.68% to $51.69 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.60% at $48.65 a barrel.

Crude prices received support after Libya reported the closure of key pipelines as tension between the government and a militia flared up again removing about 250,000 oil barrels a day from the market.

"We are seeing tighter supply and this is very likely to continue well into April," said Georgi Slavov, the global head of energy research at Marex Spectron. "But demand remains weak which is why oil is not flying at the moment."

Investors also welcomed comments from members of the Organization of the Petroleum Exporting Countries, who are showing a willingness to cut more of their supplies to make a dent in global inventories.

United Arab Emirates announced plans to reduce its production by about 200,000 barrels from March to May, "which is actually more than was agreed," said Commerzbank analysts in a recent note.

A surge in U.S. production, however, is still overshadowing the market.

The American Petroleum Institute said Tuesday that supplies rose 1.9 million barrels in the week ended March 24.

A survey by The Wall Street Journal has analysts anticipating the U.S. Energy Information Administration will on Wednesday report a 1-million-barrel increase in its count but declines in refined-product inventories. Such drops would help support crude prices.

Meanwhile, market players are eyeing the reshaping of U.S. energy policy under President Donald Trump, who on Tuesday signed an executive order to roll back environmental protection measures implemented by his predecessor.

The move underscores Mr. Trump's resolve to revitalize traditional energy sectors such as oil and coal as part of his campaign promises.

However experts say the main culprit for coal's decline is natural gas, which has flooded the market since the shale oil revolution, and a method called hydraulic fracturing has facilitated the extraction of oil and undercut coal prices.

Nymex reformulated gasoline blendstock--the benchmark gasoline contract--rose 0.43% to $1.64 a gallon. ICE gasoil changed hands at $460.75 a metric ton, up $1 from the previous settlement.

Write to Neanda Salvaterra at neanda.salvaterra@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com

 

(END) Dow Jones Newswires

March 29, 2017 07:24 ET (11:24 GMT)

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