Oil price rose by about one percent on Monday after top exporter Saudi Arabia announced a decline in supply in December, seen as a step to stopping a market decline which had fallen by 20 percent since the beginning of October.
International benchmark Brent crude oil futures were $ 71.11 per barrel at 0051 GMT, up 93 cents, or 1.3 percent from their last closing.
US West Texas Intermediate (WTI) crude oil futures were $ 60.73 per barrel, up 54 cents, or 0.9 percent from their last settlement.
Saudi Arabia plans to reduce oil supply to world markets by 0.5 million barrels per day in December, Energy Minister said on Sunday when OPEC power faces uncertain prospects in convincing other producers about a coordinated production decline.
Khalid al-Falih told reporters that Saudi Arabia's customer oil oil nominations would fall by 500,000 bpd in December compared with November due to the season's lower demand. The clip represents a decrease in global oil supply of about 0.5 percent.
The announcement came after crude prices fell by about 20 percent over a month, as supply has risen, especially by the three largest manufacturers US, Russia and Saudi Arabia.
"Saudi Arabia has gone ahead of the oil market bearers, proactively announcing that they will reduce exports," said Stephen Innes, Asia / Pacific Trade Manager at Oanda Singapore's term broker.
A major concern for Saudi Arabia and other traditional producers from the Middle East is dominated. Organization of oil-producing countries (OPEC) is an increase in US production.
US energy companies last week added 12 oil platforms to 9 November and searched for new reserves, resulting in the total bill being 886, the highest level since March 2015, Baker Hughes Energy Service Company said on Friday.
The real estimate is an indicator that US crude production, already in the record 11.6 million barrels per day (bpd), will increase further.
"One thing clearly clear, OPEC is in favor of a slate shock, because US crude production increased to 11.6 million barrels a day and will cross the 12 million threshold next year," says Innes.