Early on Wednesday, WTI crude oil is trading bullish after crossing the key $50 level, supported by Saudi Arabia committing to implement deeper supply cuts during the latest OPEC+ meeting. At the time of writing, WTI crude oil is trading at around $50.02 per barrel.

The world’s largest oil producer and exporter, Saudi Arabia, accepted a decision to increase curbs in crude output by an addition 1 million bpd in the wake of the latest wave of the coronavirus pandemic. The decision was taken at a meeting of leading oil producing countries and their allies, OPEC+, on Tuesday.

While Saudi Arabia will cut oil production further, other member nations of the group have agreed to keep their outputs steady and not raise crude production in the wake of weak demand due to the ongoing pandemic. Despite some optimism over the last few weeks of 2020 over the rollout of vaccines against COVID-19, the sentiment took a hit after the UK reported new, more contagious strains of the virus and went back into strict lockdown.

WTI crude oil prices are also enjoying support from the API report which released in the previous session and revealed a decline in US crude inventories. According to the report, crude stockpiles fell by 1.7 million barrels to 491.3 million barrels in the US over the past week.