Oil futures finished higher Tuesday, with U.S. prices at a five-week high on expectations that falling production levels and a gradual revival in demand from a COVID-19 pandemic-related drop, will ease a global glut of crude that has slammed prices in 2020.

Saudi Arabia has promised to cut an additional 1 million barrels per day in June, in addition to its share of reductions under the output-cut agreement between the Organization of the Petroleum Exporting Countries and its allies, including Russia.

Reuters reported Tuesday that OPEC+ wants to continue their existing oil production cuts beyond June, citing four OPEC+ sources. The agreement between the group of producers, known as OPEC+, called for output reductions of 9.7 million barrels per day from May 1 through June, with the group gradually reducing the size of the cuts after that, through April 2022.

West Texas Intermediate crude for June delivery rose $1.64, or 6.8%, to settle at $25.78 a barrel on the New York Mercantile Exchange. That was the highest finish for a front-month contract since April 6, according to Dow Jones Market Data. July Brent crude, the global benchmark, added 35 cents, or 1.2%, t0 $29.98 a barrel on ICE Futures Europe.

Source : Market Watch