Oil prices rose by more than a dollar a barrel on Monday after Saudi Arabia, the world's largest oil exporter, pledged to cut production by one million barrels per day from July 1, as part of its response to unfavorable macroeconomic conditions that have discouraged markets.

Brent crude futures were up $1.08, or 1.4%, at $77.21 a barrel by 05:15 GMT, after earlier in the session reaching a higher level of $78.73 a barrel and now hovering around $77.4 a barrel.

U.S. West Texas Intermediate crude rose $1.07, or 1.5%, to $72.81 a barrel after touching a high of $75.06 a barrel during the day, and WTI is now trading at $73.3 a barrel.

Crude contracts extended gains after rising 2 percent on Friday, after Saudi Energy Minister Prince Abdulaziz bin Salman said the kingdom's output would fall to 9 million bpd in July from 10 million bpd in May, the biggest cut Saudi Arabia has implemented in years.

Russian Deputy Prime Minister Alexander Novak announced on Sunday that the OPEC Plus alliance decided at a meeting yesterday to reduce production by 3.66 million barrels per day to ensure the stability of the oil market.

Saudi Energy Minister Prince Abdulaziz bin Salman also said that his country will voluntarily reduce its oil production by one million barrels per day, starting next July.

The Saudi minister added – in a press conference after a meeting of the "OPEC Plus" alliance – that this measure by the Kingdom will take effect starting next month for a period of one month, which can be extended.

Prince Abdulaziz bin Sultan considered that the decision taken by the "OPEC Plus" alliance helps to enhance the chances of stability of oil markets, and prevent sharp fluctuations in crude prices, up and down.

The OPEC Plus bloc pumps about 40% of global crude production, which means its decisions affect oil prices.