Oil prices increased by more than 1% on Monday after Saudi Arabia, the world's largest exporter, promised to reduce output by an additional 1 million barrels per day (bpd) beginning in July to counteract macroeconomic challenges that have weakened markets.

Brent crude advanced by 1.6 at $77.36 per barrel while US WTI added 1.6% at $1.11.

The Saudi oil ministry announced on Friday that the country's output would decrease to 9 million bpd from roughly 10 million bpd in May. This caused both contracts to extend gains of more than 2%. Saudi Arabia has recently made its largest cut.

The voluntary cut comes on top of a larger agreement by OPEC and producers, including Russia, to reduce output until 2024 as the OPEC+ group looks to support falling oil prices.

OPEC+ produces 3.6% of the world's demand by reducing its output target by a total of 3.66 million bpd, or nearly 40% of the total quantity of crude that is produced worldwide.