Oil traded near the highest level in almost 12 weeks after Saudi Arabia surprised the market Friday with a significant supply cut beyond what was agreed to with fellow OPEC+ members.

Futures in New York edged lower after climbing 1.3% Friday to cap a 7.3% weekly advance, the most since mid-June. The kingdom voluntarily pledged to pump 400,000 barrels a day less than mandated by OPEC+, translating to total overall curbs for the group of 2.1 million barrels a day.

West Texas Intermediate for January delivery fell 30 cents, or 0.5%, to $58.90 a barrel on the New York Mercantile Exchange as of 7:26 a.m. in London. The contract closed at $59.20 on Friday, the highest since Sept. 17.

Brent for February settlement dropped 22 cents, or 0.3%, to $64.17 a barrel on the London-based ICE Futures Europe Exchange. The contract rose 1.6% on Friday, ending the week 3.1% higher. The global benchmark crude traded at a $5.36 premium to WTI for the same month.

Source : Bloomberg