The Organization of the Petroleum Exporting Countries and allies such as Russian Federation and Oman have agreed to cut crude output by a joint 1.2 million barrels per day, 800,000 bpd of which will come from OPEC.
The average level of the reduction from the January forecast is 300,000 barrels a day, that's about the combined production of OPEC's two smallest members Equatorial Guinea and Gabon.
Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore, said oil prices were boosted after "Saudi Arabia announced it was cutting daily production and exports by a further 500,000 barrels per day (bpd) on top of its agreed OPEC quota cut".
The report put average Iranian crude output for the Q4 2018 at 3.004 million barrels per day indicating a near 600,000-bpd fall compared to the figure for Q3.
On Tuesday, the American Petroleum Institute (API) said US crude inventories fell by 998,000 barrels in the latest week, trouncing forecasts by analysts in a Reuters poll for a rise of 2.7 million barrels.
U.S. West Texas Intermediate crude futures ended Wednesday's trading session 80 cents, or 1.5%, higher, at $53.90 a barrel, Kallanish Energy reports.
"Global oil demand growth is now pegged at 1.47 mb/d for the previous year".
Trump supporter accosted journalist at El Paso rally in 'incredibly violent attack'
He said the man nearly knocked him over twice before the assailant was wrestled away by another member of the media. BBC producer Eleanor Montague, who was also on the platform, said the man had attacked other journalists but Mr.
Climbing US oil stockpiles weighed on prices. "But the news about Saudi Arabia is pretty significant, so the market is reacting to that more so than anything else right now".
Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016.
Meanwhile, oil prices rose yesterday as producer club, the Organization of Petroleum Exporting Countries (OPEC) said it had cut supply deeply in January and as US sanctions hit Venezuela's oil exports.
Oil production in Venezuela, which has been rocked by a crippling economic crisis, spiralling political turmoil and U.S. sanctions, meanwhile sank by 59,000 barrels per day.
Markets were also supported by upbeat China trade data, including for crude oil.
"Light crudes naturally yield more gasoline, and together with relatively modest demand-growth, this has driven gasoline stocks sharply higher and crack spreads sharply lower in recent months", Morgan Stanley said. In quality terms, it is more complicated.
Venezuela has tried to find alternative customers, especially in Asia, but under US pressure many buyers there are also shying away from dealing with PDVSA.