Oil prices have increased over expectations that major exporters will extend the ongoing supply curb deal and could also agree to deepen the cuts.
Brent crude rose by 50 cents to $54.11 a barrel, while the US light crude also traded 50 cents higher than its last close at $50.83, reported Reuters.
Crude oil prices gained support as the ongoing curbs on oil supplies by the Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia are set to be extended by six to nine months.
Certain oil producing countries pledged to reduce combined output by 1.8 million bpd to combat global oversupply for the first six months of the year.
OPEC is scheduled to meet on 25 May to discuss the ongoing oil curb deal.
Oanda Singapore analyst Jeffrey Halley was quoted by the news agency as saying: “Oil soared… as rumours swirled that OPEC… was considering recommending the double whammy of a production cut extension and deeper cuts ahead of this Thursday's meeting.”
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The US Energy Information Administration said that OPEC may witness an increase in net oil export revenues this year, partly due to improvement in output.
Goldman Sachs stated that the US rig count for new oil production increased by 404 since May last year.
The US oil production also soared by 10% or nearly 900,000bpd, since the middle of last year to touch 9.3 million bpd.