2018.01.2203:08:00UTC+00Oil Rallies as Saudi Arabia Says Producers will Cooperate Beyond Output Deal

Oil prices rallied on Monday, driven higher by comments from Saudi Arabia that the cooperation between oil producers who are presently restricting supplies would continue beyond this year.

Solid economic growth and a decline in U.S. drilling activity also generated support for crude, according to traders.

Brent crude futures traded at $68.89 per barrel, rising 25 cents or 0.4 percent from their last close. The international benchmark advanced to $70.37 on January 2015, the contract's highest level since December 2014.

U.S. WTI crude futures stood at $63.61 per barrel, up 24 cents or 0.4 percent from their last close. WTI rose to $64.89 per barrel on Jan 16, also the highest level since December 2014.

The world's top oil exporter, Saudi Arabia, and the de-facto leader of OPEC said on Sunday that major oil producers were seeing eye to eye that they should continue cooperating on production after their deal on supply cuts ends this year.

In the U.S., falling drilling activity for new oil production gave further support for the crude. U.S. drillers reduced five oil rigs in the previous week, bringing the number down to 747, according to Baker Hughes.