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Crude oil prices surged higher on Tuesday, on hopes OPEC-led production cuts and the U.S. sanctions against Iran and Venezuela will help tighten crude supply in the global market.

Saudi Arabia, the world's top crude exporter and de facto leader of OPEC said that it would reduce oil production to nearly 9.8 million barrels per day in March. Earlier, it had pledged to reduce production by 9.3 million barrels per day.

OPEC said it reduced oil output by about 800,000 barrels per day last month to 30.81 million barrels per day.

Slightly easing concerns about energy demand amid optimism about U.S.-China trade talks aided oil's uptick.

West Texas Intermediate Crude oil futures for March ended up $0.69, or 1.3%, at $53.10 a barrel.

On Monday, crude oil futures ended down $0.31, or 0.6%, at $52.41 a barrel.

U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer have reportedly arrived in Beijing for the high-level talks scheduled to take place later this week.

Meanwhile, markets are looking ahead to weekly oil reports. The American Petroleum Institute will release its report later today, while the Energy Information Administration will come out with its crude inventory data on Wednesday morning.