Oil jumped nearly 8 percent Tuesday on signs Saudi Arabia had made substantial cuts in its crude supply and as global markets rallied.

Saudi Arabia, the world's biggest oil exporter, has reduced exports by around 900,000 barrels per day from a peak in August, one source estimated.

U.S. crude rose $5.01 to $68.92 a barrel by 11:17 a.m. EST. London Brent crude was up $4.27 at $64.75 a barrel.

"The petroleum markets have rebounded from lower overnight levels on a trio of supportive factors: a weaker U.S. dollar, a push to the upside in global equity markets and market talk that Saudi Arabia may have already cut crude oil production," Tim Evans, analyst at Citi Futures Perspective, said in a research note.

U.S. stocks climbed further on Tuesday as the presidential election got under way, while investors picked up shares trading around five-year lows amid further signs of easing in global credit markets.

Saudi Arabia's supply cut helps to remove doubts about whether the world's top exporter would comply quickly with a 1.5 million barrel per day output cut agreed by the Organization of the Petroleum Exporting Countries in Vienna last month.

Other OPEC members have also cut back.

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