U.S. oil closed at 2016 highs on Tuesday after a report that top producers Russia and Saudi Arabia have agreed to freeze output ahead of a much-anticipated producers meeting on Sunday.
Russia's Interfax news agency quoted a diplomatic source in Doha saying that Russia and Saudi Arabia reached a consensus on Tuesday about an output freeze and that the final decision will not depend on Iran.
On the charts, both Brent and WTI broke through resistance at the 200-day moving average, which stood at $43.53 and $41.04 respectively. A move above this, plus the narrowing Brent contango, could lead to further gains.
Brent crude futures were up $1.86, or 4.3 percent, at $44.69 a barrel
U.S. West Texas Intermediate (WTI) settled at $42.17, up 4.48 percent, or $1.81, a 2016 high and the best settlement since November.