Oil prices have stabilised after falling following the US raising interest rates. 

North Sea Brent crude oil edged up 30 cents at $54.20 a barrel, while the US light crude oil increased 10 cents at $51.14, Reuters reported.

Following the increase in rates by the US Federal Reserve, the dollar rose to a 14-year high against a number of other currencies hitting crude demand.

The news agency quoted PVM Oil Associates in London senior market analyst Tamas Varga saying: "We got sold off because of the strong dollar, but any weakness should be temporary."

"We got sold off because of the strong dollar, but any weakness should be temporary."

Members of the Organization of the Petroleum Exporting Countries (OPEC) and other Russia-led oil producers have agreed to reduce output by almost 1.8 million barrels per day (bpd) to clear a global supply glut.

If output is reduced as agreed, oil markets are set to move into a deficit in the first quarter of next year, ANZ bank said.

Industry data revealed that oil companies have cut costs to help withstand conditions when oil prices are low.

Data released by the US Energy Information Administration (EIA) highlighted a fall in commercial crude stocks last week by 2.56 million barrels to 483.19 million barrels.