Oil price leaped on Thursday, January 28, after a Russian official said Saudi Arabia had proposed that oil-producing countries cut output by up to 5 percent each amid a massive supply glut in the world market that has depressed prices for a year and a half.
The comments initially sent Brent crude up more than 8 percent to almost $36 a barrel and U.S. crude up nearly 8 percent, cresting just below $35.
The price gains later moderated a little, and as of 10:09 a.m. EST, Brent futures for March delivery, two days ahead of expiry, were up $1.50, or 4.5 percent, at $34.60 a barrel. U.S. crude was up $1.39, or 4.3 percent, at $33.69 per barrel.
Russian Energy Minister Alexander Novak announced the proposed cuts on Thursday.
The reduction would amount to about 500,000 barrels a day of cuts by Russia, a major non-OPEC producer.
If implemented, the output reductions could help ease a supply glut that has caused oil prices to fall more than 60 percent since mid-2014. Prices hit their lowest level for more than 12 years last week.