Oil prices have increased after the Organisation of the Petroleum Exporting Countries (OPEC) and other major producers reached a deal to jointly cut production at a meeting held in Vienna, Austria, on 30 November.
Brent crude increased to $57.89 a barrel, while the US West Texas Intermediate (WTI) crude also hit a July 2015 high of $54.51 a barrel, Reuters reprted.
The deal has been signed after almost a year of disputing between the OPEC member countries.
At the meeting, the members decided to implement a new OPEC-14 production target of 32.5 million barrels per day (mb/d) to accelerate the ongoing drawdown of the stock overhang and bring the oil market rebalancing forward.
Set to be effective from 1 January next year, the agreement sees member countries confirm their commitment to a balanced oil market.
Goldman Sachs reportedly said: "We believe that the observation of the OPEC-11 and non-OPEC 11 production cuts is required to sustainably support oil prices to our 1H17 WTI price forecast of $55 a barrel."
Goldman Sachs expects that the full compliance will be worth an extra $6 a barrel.
OPEC plans to reduce oil production by 1.2mb/d, while Saudi Arabia will cut around 486,000bpd.
Producers from outside the cartel agreed to reduce output by 558,000bpd.