Oil prices have improved based on the expectations that the ongoing supply cut deal by major crude producing nations will be extended further following a meeting scheduled to be held at the end of this month.

Brent crude futures LCOc1 climbed 19¢ to touch $62.06 per barrel, while the US West Texas Intermediate (WTI) crude futures reached $55.39 a barrel, gaining 6¢ from their last close, reported Reuters.

Traders noted that the rising expectations completely negated the impact of rising US production, which was said to have put pressure on the oil prices.

The Organization of the Petroleum Exporting Countries (OPEC) and other oil-producing countries have currently restricted their crude production under a deal intended to tighten the market and revive crude prices.

"Traders noted that the rising expectations completely negated the impact of rising US production, which was said to have put pressure on the oil prices."

The arrangement is slated to end on 31 March next year.

OPEC and other participating nations will meet on 30 November to discuss the policy, and the countries are expected to elect to extend the restriction period during the meeting.

ASR Wealth Advisers equities and derivatives adviser Shane Chanel was quoted by the news agency as saying: “OPEC, led by Saudi will look to support the market, especially until the sale of Aramco is complete.

“If sanctions against Iran are executed, it will drive the price significantly higher.”

Crude prices previously slipped as a result of reports from the US’s Energy Information Administration (EIA), which stated that US crude inventory soared for the consecutive second week.

The inventory increased by 1.9 million barrels in the week to 10 November to a total of 459 million barrels.

The US’ overall crude oil productionalso touched 9.65 million barrels per day (bpd), which represents an almost 15% increase compared to the mid-2016 levels.