The OPEC+ group of oil exporting countries has agreed to voluntary output cuts of almost 2 million b/d in a bid to stabilise the market.
The decision was taken at an online meeting on Thursday, news agency Reuters reported.
The voluntary cuts add up to a total 'approaching 2 million b/d', according to the report, including an extension of Saudi Arabia's 1 million b/d cut that it has had in place since July. Russia's output cut will be 500,000 b/d.
The voluntary nature of the cuts may make it more difficult for them to be maintained. Disagreements are reported to have broken out over output quotas for African countries.
ICE February Brent futures traded at $80.18/bl as of 4:52 PM in London, down by $2.70/bl on the day.