TOKYO (Reuters) – Oil costs jumped round 2% on Friday, heading for a fifth week of good points, as main producers agreed on a compromise to proceed some cuts to manufacturing to deal with coronavirus-hit demand regardless that these fell in need of expectations.

Brent was up $1.04, or 2.1%, at $49.75 a barrel by 0555 GMT after gaining round 1% on Thursday. West Texas Intermediate rose 84 cents, or 1.8% to face at $46.48 a barrel.

OPEC and Russia on Thursday agreed to ease deep oil output cuts from January by 500,000 barrels per day, however failed to return to a compromise on a broader coverage for the remainder of subsequent 12 months.

“OPEC+ clearing the hurdle of exiting its present cuts in a coordinated means … reinforces our conviction in a gradual and sustainable rally in oil costs by 2021,” Goldman Sachs stated in a report after the choice.

The rise means the Group of the Petroleum Exporting Nations (OPEC) and Russia, a bunch often called OPEC+, are set to scale back manufacturing by 7.2 million bpd, or 7% of world demand from January, in contrast with present cuts of seven.7 million bpd.

OPEC+ was anticipated to proceed present cuts till at the very least March, after backing down from plans to lift output by 2 million bpd.

Additionally supporting costs, a bipartisan $908 billion coronavirus support plan gained momentum within the U.S. Congress.

(Reporting by Aaron Sheldrick; Modifying by Ana Nicolaci da Costa)