U.S. West Texas Intermediate crude climbed $1.41, or 2%, to $73.15 a barrel, after touching an intraday high of $75.06 a barrel.
The group, known as OPEC+, pumps around 40% of the world's crude and has in place cuts of 3.66 million bpd, amounting to 3.6% of global demand.
"The oil market now looks like it will be even tighter in the second half of the year."
Consultancy Rystad Energy said the additional cut by Saudi is likely to deepen the market deficit to more than 3 million bpd in July, which could push prices higher in the coming weeks.
By contrast, the United Arab Emirates was allowed to raise output targets by around 200,000 bpd to 3.22 million bpd.
Persons:
Baker Hughes, Goldman Sachs, Brent, Florence Tan, Diane Craft, Sonali Paul
Organizations:
Saudi, Brent, . West Texas, Organization of, Petroleum, ANZ, Rystad Energy, United Arab, Thomson
Locations:
SINGAPORE, Saudi Arabia, Saudi, Russia, OPEC, Nigeria, Angola, United Arab Emirates, UAE, United States