Oil prices have risen after plummeting to a three-month low last week fuelled by expectations that OPEC may extend output-cuts beyond June this year.
There were growing concerns among investors regarding continuous increase in crude inventory.
Brent crude gained 42 cents to reach $52.04 a barrel, while US West Texas Intermediate (WTI) crude climbed 38 cents to touch $48.60, reported Reuters.
OPEC countries and some non-OPEC members decided to reduce output by 1.8 million barrels a day from 1 January this year for six months. Despite this initiative, oil inventories remained high worldwide.
OPEC sources have told the news agency that its members are in favour of extending the deal, but need support from non-OPEC oil producers.
The future course of oil price largely depends on US stocks data due to be released by the American Petroleum Institute.
Last week, the API reported a surprise decline in US inventory. This week, analysts predict a sharp increase in stocks.
Many analysts believe that if the OPEC-led production restraint remains consistent, then the oil market can be rebalanced irrespective of rising US inventory.
Vontobel Asset Management senior commodity strategist Jeremy Baker was quoted by Reuters as saying: "The combination of robust demand and weaker global supply leading to rebalanced markets will not be derailed by US shale oil."
Baker also said that growth in crude demand this year is expected to rise faster than the long-term average of 1.2 million bpd.
Image: An offshore platform. Photo: courtesy of QR9iudjz0/ FreeImages.com.