By Scott DiSavino
NEW YORK (Reuters) - Oil prices rose on Wednesday after top exporter Saudi Arabia said it would cut crude exports and deliver an even deeper cut to its production, and after an industry group reported a surprise decline in U.S. oil inventories.
Brent crude, the global benchmark, was up $1.07, or 1.7 percent, at $63.49 a barrel at 9:55 a.m. EST (14:55 GMT), while U.S. West Texas Intermediate futures were up 91 cents, or 1.7 percent, at $54.01.
On Tuesday, the American Petroleum Institute (API) said U.S. crude inventories fell by 998,000 barrels in the latest week, trouncing forecasts by analysts in a Reuters poll for a rise of 2.7 million barrels.
The U.S. Energy Information Administration (EIA) is scheduled to release its weekly data at 10:30 a.m. EST (1530 GMT) on Wednesday.
U.S. crude output is expected to grow by 1.45 million barrels per day (bpd) this year and by another 790,000 bpd next year to hit 13 million bpd in 2020, according to the EIA
The growth, led by U.S. shale oil output, has built up global inventories of crude and refined products. Refining margins for gasoline have collapsed.
The Organization of the Petroleum Exporting Countries (OPEC) said on Tuesday it had cut output by almost 800,000 bpd in January to 30.81 million bpd. Saudi Arabia is responsible for most of that reduction.
"Oil prices have not increased alarmingly because the market is still working off the surpluses built up in the second half of 2018," the IEA said.
"In quantity terms, in 2019, the U.S. alone will grow its crude oil production by more than Venezuela's current output. In quality terms, it is more complicated. Quality matters."
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