Oil prices have increased despite rising US output, as Saudi Arabia announced plans to make substantial supply cuts to multiple market regions.
Brent crude futures LCOc1 gained 23 cents to touch $48.52 per barrel, while the US West Texas Intermediate (WTI) crude futures CLc1 jumped 19 cents to $46.27, reported Reuters.
Saudi Arabia is currently leading the effort by the Organization of the Petroleum Exporting Countries (OPEC) with other prominent producers to cut production by nearly 1.8 million barrels per day (bpd) until the first quarter of 2018.
Officials of this Middle East nation stated plans to make real cuts beginning next month, including 300,000bpd to Asia.
OPEC's efforts led to the fall in its exports since the oil curb deal commenced in January this year.
Some members of the oil cartel such as Libya and Nigeria are exempted from the cuts.
According to trade data, OPEC shipments are set to be nearly around 25.3 million bpd in the first half of this year compared to 26 million bpd in the last six months of 2016.
The US Energy Information Administration opined that production can touch ten million bpd next year, which currently stands at nearly 9.3 million bpd.