Saudi Arabia, world's top oil supplier, announced that it would markedly slash oil supply in the recent two months. Its energy minister Khalid al-Falih said on Wednesday that the oil producer would cut its output to 7.2 million barrels per day (bpd) in January, down from 8 million bpd in November.
He also announced the output cut would go up by an additional 100,000 bpd reduction in February.
Further easing concerns of global oversupply, U.S. commercial crude oil inventories decreased by 1.7 million barrels from the week ending Jan. 4, the U.S. Energy Information Administration reported on Wednesday, which marked the biggest fall since November 2018.
The falling inventories came amid rising crude imports, which recorded an average of 7.8 million barrels per day (bpd) last week, the report said.
The West Texas Intermediate for February delivery increased 0.23 U.S. dollar to settle at 52.59 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery rose 0.24 dollar to close at 61.68 dollars a barrel on the London ICE Futures Exchange.