Oil futures settled sharply higher on Wednesday, with U.S. prices at their highest finish in almost two weeks as U.S. government data showed the first decline in domestic crude supplies in six weeks.

Traders also weighed the possibility that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, will announce deeper production cuts or an extension of their current output-cut pact, or both, as they gather over the next two days.

A report from The Wall Street Journal Wednesday, meanwhile, suggested that the Saudis may start to comply with their quota commitment, potentially leading to an output boost, as they has been cutting more than required to make up for producers who weren't reducing output as much as pledged.

January West Texas Intermediate oil rose $2.33, or 4.2%, to settle at $58.43 a barrel on the New York Mercantile Exchange. That was the highest front-month contract finish since Nov. 21, according to FactSet data.

Source: marketwatch