Investing.com - Oil prices rallied for the fourth straight session on Friday, amid speculation OPEC and non-OPEC producers may be edging closer to a deal to cut production in an effort to tackle one of the biggest supply gluts in decades.
On the ICE Futures Exchange in London, Brent oil for April delivery surged $1.19, or 3.42%, on Friday to close the week at $35.99 a barrel.
A day earlier, prices climbed 87 cents, or 2.56%, after Russian energy minister Alexander Novak said Saudi Arabia proposed to cut oil production by each country by up to 5%.
On the week, London-traded Brent futures jumped $3.81, or 10.58%, the second consecutive weekly gain. Brent prices are up nearly $9.00, or 25%, since falling to a 12-year low of $27.10 on January 20.
Despite recent gains, Brent ended January with a loss of 3.7% amid ongoing concerns over a global supply glut.
Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by the Organization of the Petroleum Exporting Countries last year not to cut production in order to defend market share. Oversupply issue will be exacerbated further as Iran returns to the global oil market in the coming months.
Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in March tacked on 40 cents, or 1.2%, to end the week at $33.62 a barrel. On Thursday, prices advanced 92 cents, or 2.85% amid hopes for a deal between major exporters to cut production.
For the week, New York-traded oil futures rose $1.43, or 4.25%, the second straight weekly gain. The U.S. benchmark has rallied almost $7.50, or 22%, since tumbling below $27 for the first time since September 2003 on January 20.
U.S. oil futures still lost 8.9% in January as investors worried that a huge oversupply in crude was coinciding with an economic slowdown, especially in China.
Meanwhile, Brent's premium to the West Texas Intermediate crude contract stood at $2.37, compared to a gap of $1.18 by close of trade on Thursday.