WTI crude futures swung between small gains and losses on Wednesday but hovered around $50 a barrel which is the highest level in 11 months after Saudi Arabia unexpectedly agreed to voluntarily cut production by 1 million bpd in February and March during an OPEC+ meeting.
The move also persuaded other producers to leave output supplies unchanged and allowed Russia and Kazakhstan to lift production.
Geopolitical tensions between Tehran and Seoul following the seizure of a South Korean tanker by Iran’s Revolutionary Guards in the strait of Hormuz also pressured oil prices up.
Meanwhile, API data showed US crude stocks fell for the second week by a faster-than-expected 1.663 million bpd. EIA data will be released later in the day.