Investing.com - Oil prices climbed on Friday ahead of a weekend meeting of the Organization of the Petroleum Exporting Countries and non-OPEC producers to finalize the details of a planned output cut.
U.S. crude oil settled up 65 cents or 1.28% at $51.49 a barrel from its previous close on the New York Mercantile Exchange.
Global benchmark Brent futures were at $54.36 a barrel, up 47 cents or 0.87% on London’s ICE Futures Exchange.
Oil prices have climbed above $50 a barrel since OPEC agreed on its first production cut since 2008, aimed at reining in massive oversupply that has seen prices more than halve since mid-2014.
The deal will see the group slash output by 1.2 million barrels per day from January 1.
On Saturday, major oil producers reached agreement on a deal which will see non-OPEC members cut output by an additional 558,000 bpd. Of that, Russia will cut 300,000 bpd.
This is short of the initial target of 600,000 bpd, but it is still the largest output cut by non-OPEC nations ever.
While the output cut agreement has boosted oil prices, some remain skeptical on the ability of major producers to adhere to output limits.
Meanwhile, Reuters reported Sunday that oil production by Saudi Arabia rose to a new record high in November.
OPEC and Russia have already reported that output hit record highs since the deal was announced, adding to fears that the global supply overhang could persist well into 2017.
Some analysts have also warned that the cuts are likely to cause other producers, particularly U.S. shale drillers, to quickly ramp up output as prices rise.
In the week ahead, markets will focus their attention on the implementation and impact of the OPEC agreement. Traders will also be watching U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Tuesday, December 13
The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.
Wednesday, December 14
The U.S. Energy Information Administration is to release weekly data on oil and gasoline stockpiles.
Friday, December 16
Baker Hughes will release weekly data on the U.S. oil rig count.