Oil jumped to the highest since July 2015 after Saudi Arabiasignaled it's ready to cut output more than earlier agreed andnon-OPEC countries including Russia pledged to pump less nextyear.

Futures rose as much as 5.8% in New York and 6.6% in London.Saudi Energy Minister Khalid Al-Falih said Saturday the biggestcrude exporter will “cut substantially to be below” the targetagreed last month with members of OPEC. His comments followed adeal by 11 non-OPEC countries including Mexico to join forces withthe group and trim output by 558,000 barrels a day next year, thefirst pact between the rivals in 15 years.

U.S. oil futures have gained about 20% since the Organization ofPetroleum Exporting Countries agreed on Nov. 30 to cut output forthe first time in eight years. Saudi Arabia, which initiated OPEC'sdecision in 2014 to pump without limits, is leading efforts to takeback control of the market. The OPEC and non-OPEC plan encompassescountries that supply 60% of the world's crude, but excludes majorproducers such as the U.S., China, Canada and Brazil.