Oil prices have risen more than 3% after Saudi Arabia in addition to Russia said a deal to cut production should be extended until March next year.
A barrel of Brent Crude jumped to $52.52 following a meeting in China between the two countries.
The oil cartel Opec, which will be dominated by Saudi Arabia, in addition to non-Opec producers led by Russia have been attempting to use the output cut to drive up prices.
However, the US will be not included in addition to its high output could undermine efforts.
Following the meeting in Beijing, Saudi Energy Minister Khalid al-Falih in addition to his Russian counterpart Alexander Novak said: “The two ministers agreed to do whatever the item takes to achieve the desired goal of stabilising the market in addition to reducing commercial oil inventories to their several-year average level.”
Mr Falih added: “We’ve come to the conclusion in which the agreement needs to be extended.”
The two countries produce 20 million barrels of crude oil a day – about one-fifth of global consumption – in addition to different oil-producing nations are anticipated to follow their lead over cuts.
Russian President Vladimir Putin said extending output cuts for a further nine months was the right thing to do: “We support the proposal.”
Andrew Walker, BBC economics correspondent
Opec, in addition to the non-member countries such as Russia in which are co-operating with the group, face a dilemma.
A central part of their problem will be the US shale oil business in addition to the competition to the established industry the item has come to represent inside the past decade.
After the cost of oil started off to plunge three years ago, Opec – in particular Saudi Arabia – stood by, hoping the financial pressure on US shale would likely force the item to cut back.
the item didn’t definitely work, so Opec in addition to a few different producers cut production hoping to revive prices. inside the process they created more space for shale producers.
The cut hasn’t definitely worked. Prices right now are about the same level as when they did the deal. Extending the item might help if, as Russia in addition to Opec trust, the item leads to lower stocks of crude oil. however the item will be not bad news for their rivals inside the US.
An agreement to cut production was reached in September last year, however the deal was due to run out later This kind of year.
Under the agreement, Opec countries were to cut production by 1.2 million barrels a day, while the Russian-led non-Opec nations agreed to reduce output by 0,000 barrels a day.
Earlier This kind of month, oil prices hit a several-month high, however have wobbled over fears in which producers may be unwilling to hold their nerve in addition to limit production.
The US has also refused to cut production in addition to its own output has increased by about 10% since last year.
In recent years Saudi Arabia has been in a pitched battle with the US to try to reduce the cost of oil.
the item has been concerned with the increase in US shale gas production, in addition to so increased its oil output to drive down prices in a bid to make shale gas exploration economically unattractive.
However, last year Saudi officials agreed to the first cut in production for eight years.