LONDON, Jan 13: Oil jumped almost $2 to above $39 a barrel on Tuesday after Saudi Arabia said it had removed 1.7 million barrels per day (bpd) of oil from the world market since last summer.

US crude oil futures for February rose to a high of $39.50, up $1.91, before easing back slightly. By 1600 GMT, the contract was at $38.44.

February Brent jumped to a high of $45.59, up $2.68. The moves followed comments by Saudi Arabian Oil Minister Ali al-Naimi that the kingdom would pump below its Opec production target of 8.05 million bpd in February.

“If there is a need to do more, we will do so because our purpose is to bring things in balance,” Naimi told reporters in New Delhi. “We will look and see whether we need to take more.

Dealers said the market was also supported by a blast of cold winter weather.—Reuters