Oil prices jumped more than 10 percent on Tuesday on signs Saudi Arabia had made substantial cuts in its crude exports and as global financial markets rallied.
Saudi Arabia has reduced exports after OPEC agreed last month to lower output, according to trade sources, with some estimating the world's top exporter had cut shipments by around 900,000 barrels per day from a peak in August.
U.S. light, sweet crude rose over $6.62, or 10.36 percent, to settle at $70.53 a barrel.
London Brent crude was up more than $6 at near $67 a barrel.
Crude prices have plummeted from a record above $147 a barrel in July as the global credit crisis has hit the wider economy, dampening fuel demand in major consumer nations, including the United States.
The steep drop prompted the Organization of Petroleum Exporting Countries to agree to reduce output by 1.5 million bpd at an emergency meeting last month, and some members have called for additional reductions.