Oil prices have increased amid expectations that some of the planned output reductions agreed by the Organization of the Petroleum Exporting Countries (OPEC) and other producers would be implemented.
Brent crude futures LCOc1 were up 25 cents trading at $55.20 per barrel, while the US West Texas Intermediate (WTI) crude oil futures CLc1 rose 26 cents trading at $52.222 per barrel, Reuters reported.
Analysts said that the cuts planned by the OPEC, especially Saudi Arabia and Abu Dhabi are set to materialise despite doubts over implementation.
BMI Research was quoted by the news agency as saying: "Coordinated output cuts will support the market rebalancing that will draw down global stock levels, leading us to revise up our Brent crude forecast for 2017 to $57 per barrel."
Traders said that strong demand from the world's third-biggest oil consumer India also supported prices.
Freight Services International in Dubai fuel broker Matt Stanley said that the average rig count in Canada for last month stood at 209, up 36 from 173 in November last year.
Shale producers in the US added rigs for a tenth week in a row last week, which extended the drilling recovery into the eighth month.