WTI jumps as much as 3 in early trade, Brent gains over 2
Saudi Arabia to cut output on top of OPEC extensions
OPEC meet, Saudi cut could boost oil prices analysts

SINGAPORE, June 5 Reuters Oil prices were up 1 a barrel on Monday after top global exporter Saudi Arabia pledged to cut production by another 1 million barrels per day from July, counteracting the macroeconomic headwinds that have depressed markets.

Brent crude futures were at 77.21 a barrel, up 1.08, or 1.4, at 0515 GMT after earlier hitting a sessionhigh of 78.73 a barrel.

U.S. West Texas Intermediate crude climbed 1.07, or 1.5, to 72.81 a barrel, after touching an intraday high of 75.06 a barrel.

The contracts extended gains of more than 2 on Friday after the Saudi energy ministry said the kingdom39;s output would drop to 9 million barrels per day bpd in July from around 10 million bpd in May. The cut is Saudi Arabia39;s biggest in years.

The voluntary cut pledged by Saudi on Sunday is on top of a broader deal by the Organization of the Petroleum Exporting Countries and their allies including Russia to limit supply into 2024 as the group seeks to boost flagging oil prices.

The group, known as OPEC, pumps around 40 of the world39;s crude and has in place cuts of 3.66 million bpd, amounting to 3.6 of global demand.

Saudi remains keener than most other members in terms of ensuring oil prices above 80 per barrel, which is essential for balancing its own fiscal budget for the year, said Suvro Sarkar,…