Brent climbs to highest since February as Saudi Arabia joins production cut

Brent oil prices climbed on Wednesday to their highest level since February after Saudi Arabia agreed to increase output cuts than initially expected at the organization’s meeting. In the United States, crude inventories dropped last week, according to industry data. 

Brent crude futures gained 0.6% to $53.94 per barrel, its highest since end-February of 2020. It stood at $53.79 per barrel after rising 4.9% on Tuesday.

U.S. West Texas Intermediate crude futures rose 0.26%, or 13 cents, at $50.06 per barrel. The benchmark closed 4.6% higher at $49.93 on Tuesday, its highest since end-February of 2020.

Saudi Arabia agreed on Tuesday to increase its voluntary oil production cuts of 1 million bpd in February and March after a meeting with OPEC+ producers. 

As COVID-19 cases surge globally, oil producers seek to support prices as demand takes a hit from newly-imposed restrictions.

U.S. crude oil stocks fell 1.7 million barrels to 491.3 million barrels in the week ended Jan. 1, the American Petroleum Institute showed.