As a result, global benchmark Brent crude was up $1.24, or 2.5% at $49.97 US a barrel mid-morning Wednesday.
Opec is due to meet later this month in the hope of striking a second deal to secure a year of production cuts.
Prices surged after that deal, but have come under pressure in recent weeks as USA production has climbed, undermining OPEC-led efforts to balance supply with demand.
According to the June nomination plans, Aramco will cut supplies by 1 million barrels each to Southeast Asia, China and South Korea, a source, who has knowledge of the nominations but did not wish to be identified, told Reuters.
While the Organization of the Petroleum Exporting Countries and Russian Federation have delivered on their pledges to cut their combined production by 1.8 million barrels a day, investors believe more needs to be done in order to bring the market back to balance.
Prices gained support after WTI broke above the $47.00 p/b level with a peak around $47.60 later in the United States session with sentiment also boosted by the Brent break back above $50.00 p/b. At 522.5m barrels, U.S. crude oil inventories are near record levels.
Oil rose on Tuesday but faced headwinds from concern over slowing demand and the rise in USA crude output that has shaken investors' faith in the ability of OPEC to rebalance the market.
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Despite this, Falih said markets had improved from last year's lows, when crude prices fell below $30 per barrel.
Demand for oil will have to be "surprisingly brisk" in the near future if the Organization of the Petroleum Exporting Countries (OPEC) is to avoid making the choice between maintaining a price floor and protecting market share.
Total US Crude oil inventory stands at 527.77 million barrels (mb) in April, 2017, 3.6 per cent higher from same period last year and 21.6 per cent higher from five-Year average. "An extension of the supply deal beyond June looks likely but its effectiveness will remain questioned".
Both investors and analysts are doubtful about the effects of the deal extension, with some suggesting it would have to be extended beyond the end of 2017 and others arguing that cuts won't do the trick because it is missing the point: USA producers are boosting their drilling efficiency and lowering production costs, which results in sustainable profitability.
"As long as you've got those builds in gasoline, it is going to be hard for crude oil to rally", said Olivier Jakob, energy market strategist at Petromatrix in Zug, Switzerland.
But how much higher can crude oil prices climb?
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