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Oil prices rose yesterday to their highest since February 2020 after Saudi Arabia agreed to reduce output more than expected in a meeting with allied producers, while industry figures showed US crude stockpiles were down last week.

Brent crude rose as much as 0,9 percent to US$54,09 a barrel, the highest since February 26, 2020. It was at US$53,82 a barrel at 0757 GMT after jumping 4,9 percent on Tuesday.

US West Texas Intermediate (WTI) futures climbed as much as 0,6 percent to US$50,24 a barrel, also the highest since February 26, before slipping to US$49,96. The contract on Tuesday closed up 4,6 percent.

Saudi Arabia, the world’s biggest oil exporter, agreed on Tuesday to make additional, voluntary oil output cuts of one million barrels per day (bpd) in February and March, after a meeting with the Organisation of the Petroleum Exporting Countries (OPEC) and other major producers that form the group known as OPEC+.

The reductions agreed by Saudi Arabia were included in a deal to persuade other producers in the OPEC+ group to hold output steady.

With coronavirus infections spreading rapidly in many parts of the world producers are trying to support prices as demand takes a hit from new lockdowns being put in place. — Reuters