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Brent crude rose 85 cents, or 1.6%, to $54.45 a barrel at 1050
GMT, its highest level since Feb. 26, 2020, after jumping about
5% on Tuesday.
U.S. West Texas Intermediate (WTI) futures were up 52 cents, or
1%, to $50.45 a barrel, also their highest since Feb. 26. The
contract on Tuesday closed up 4.6%.
Saudi Arabia, the world's biggest oil exporter, on Tuesday
announced it would make additional, voluntary oil output cuts of
1 million barrels per day (bpd) in February and March, after a
meeting of OPEC+, which groups Organization of the Petroleum
Exporting Countries producers and others, including Russia.
[nL1N2JG0GX]
With coronavirus infections spreading rapidly producers are wary
of a further hit to demand.
OPEC+ agreed most producers would hold output steady in February
and March while allowing Russia and Kazakhstan to raise output
by a modest 75,000 bpd in February and a further 75,000 bpd in
March.
"Despite this bullish supply agreement, we believe Saudi's
decision likely reflects signs of weakening demand as lockdowns
return," Goldman Sachs analysts wrote in a note, though they
maintained an end-2021 forecast for Brent of $65 a barrel.
U.S. crude oil inventories fell by 1.7 million barrels in the
week to Jan. 1 to 491.3 million barrels, data from industry
group the American Petroleum Institute showed late on Tuesday. [EIA/S]
[API/S]
Official U.S. Energy Information Administration inventory data
for the week to Jan.1 is due on Wednesday.
(Reporting by Aaron Sheldrick and Ahmad Ghaddar; editing by
Kenneth Maxwell and Jason Neely)
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