Oil hits 11-month highs on Saudi output cut pledge, equities rally

Brent oil topped $55 a barrel for the first time since February, as gains in broader markets added to investor optimism already buoyed by Saudi Arabia’s unilateral plan to cut output.

The move caps a stellar few months for the oil market, with crude emerging as a favored play to bet on coronavirus vaccines and global reflation. Saudi Arabia’s pledge earlier in the week to cut production by 1 million barrels a day in February and March added vigour to the rally, while Democrat gains in the US have spurred broader markets higher in expectation of additional stimulus.

Covid remains a near-term