Oil prices increased on Wednesday to their highest peak since February 2020 after Saudi Arabia consented to lessen yield more than anticipated in a gathering with partnered makers, while industry figures demonstrated U.S. crude reserves were down a week ago.

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Brent crude surged as much as 0.9% to reach $54.09 a barrel, the most noteworthy since February 26, 2020. At 7:57 GMT, the price was at $53.82 per barrel after increasing 4.9% on Tuesday.

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U.S. West Texas Intermediate (WTI) prospects moved as much as 0.6% to price $50.24 per barrel, likewise the most elevated since February 26, right before dropping to $49.96. The agreement on Tuesday ended up with 4.6%.

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Saudi Arabia, the world's greatest oil exporter, concurred on Tuesday to make extra, deliberate oil yield cuts of 1 million barrels a day in February and March, after a gathering with the Organization of the Petroleum Exporting Countries (OPEC) and other significant makers that structure the gathering known as OPEC+.

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The decreases concurred by Saudi Arabia were remembered for an arrangement to convince different producers in the OPEC+ gathering to keep the output constant.

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With COVID cases spreading quickly in numerous parts of the globe, producers are attempting to help prices with demand getting another hit from new lockdowns being implemented.

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"Despite this bullish supply agreement, we believe Saudi's decision likely reflects signs of weakening demand as lockdowns return," analysts from Goldman Sachs claimed in a note, although the investment bank kept its year-end 2021 expectation for Brent of $65 per barrel.

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OPEC member Iran's capture of a South Korean big hauler in the Gulf on Monday likewise kept on supporting prices. Tehran refused to approve that it was keeping the boat and its team prisoner after holding onto the tanker while pushing for Seoul to deliver $7 billion of assets frozen under U.S. sanctions.

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In the meantime, U.S. crude oil inventories decreased by 1.7 million barrels in the week to January 1 hitting 491.3 million barrels, information from industry group the American Petroleum Institute indicated late on Tuesday. That surpass analysts' assumptions in a Reuters survey for a drop of 1.3 million barrels.

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