Oil extends gains after surprise Saudi output cut and U.S. crude draw | Reuters
Oil prices extended gains on Wednesday, rising to their highest since late February, after Saudi Arabia announced a big voluntary production cut, and as U.S. crude inventories declined in the latest week.
Brent crude was up 88 cents, or 1.7%, to $54.48 a barrel at 11:24 a.m. EST (1524 GMT). Earlier in the session, it hit a high of $54.63 a barrel, a level not seen since Feb. 26, 2020.
U.S. West Texas Intermediate (WTI) futures were up 75 cents, or 1.5%, to $50.68 a barrel. The contract touched $50.71 a barrel, its highest since Feb. 25.
Both contracts were up about 5% on Tuesday.
U.S. crude stocks fell sharply while fuel inventories rose, the Energy Information Administration said on Wednesday, and 2020 came to a close with a sharp decline in overall demand due to the coronavirus pandemic.
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