Oil prices rose to their highest level in February 2020 on Wednesday, after Saudi Arabia agreed to cut production more than expected, even though on Monday the OPEC+ group, made up of the Organization of the Petroleum Exporting States and other major producers like Russia, failed to reach a compromise, Reuters reports.

On the ICE Futures exchange in London, the price of a barrel of Brent oil in the North Sea with delivery in March rose by almost 1% to $54.09, the highest level since February 6, 2020, after an increase of 4.9%.

On the New York Mercantile Exchange (Nymex), the price of a barrel of “light sweet crude” oil delivered in February rose to $50.24, also the highest level since February 26, 2020, then fell below 50 of dollars. On Tuesday, the price of a barrel of “light sweet crude” oil increased by 4.6%.

Saudi Arabia, the world’s largest oil exporter, agreed on Tuesday, following talks under OPEC+, to make additional voluntary production cuts of one million barrels of oil per day (bpd) in February and March, according to Agerpres.

With the expansion of the coronavirus pandemic (COVID-19) and the tightening of restrictions, the demand for crude oil is declining, and producers are trying to support prices by reducing production.

Russia and Kazakhstan will increase their production by 75,000 barrels of oil per day in February and 75,000 bpd in March, according to negotiations between the Organization of the Petroleum Exporting States and other major producers.