Oil prices hit 11-month highs and were on track for a strong weekly gain, supported by Saudi Arabia’s pledge to cut output and a rally in global equities as investors looked beyond rising coronavirus cases.
Brent crude climbed 44 cents, or 0.8%, to $54.82 a barrel by 1007 GMT, the highest since late February, and U.S. West Texas Intermediate (WTI) gained 36 cents, or 0.7%, to $51.19, also its highest level since late February.
Both benchmarks were on track for weekly gains of around 6%.
Earlier this week, Saudi Arabia pledged additional, voluntary oil output cuts of one million barrels per day (bpd) in February and March as part of a deal under which most OPEC+ producers will hold production steady in the face of new coronavirus lockdowns.
However, analysts said oil prices could see a correction in coming months, if their rallies were not backed by stronger fuel demand.
Severe mobility restrictions around the world to contain a surge in COVID-19 cases still weighed on fuel sales, weakening the prospect of energy demand recovery in the first half of 2021.