Oil prices rose to around four-month highs overnight, aided by the prospect of prolonged OPEC-led oil supply curbs and signs of inventory declines in US crude stockpiles.
Brent crude futures settled at $US67.54 a barrel, rising 38 US cents, or 0.6 per cent.
The international benchmark held near its 2019 peak of $US68.14 reached on Thursday.
US West Texas Intermediate crude settled at $US59.09 a barrel, adding 57 US cents, or one per cent, after hitting a four-month high at $US59.23.
The Organisation of the Petroleum Exporting Countries and its allies met in Azerbaijan to monitor their crude supply reduction pact, where they said they would exceed commitments in the coming months.
“The chatter out of the OPEC meeting was sufficiently supportive to get us going,” said John Kilduff, a partner at Again Capital LLC in New York.
The group also canceled their April meeting, meaning the producer group known as OPEC+ will not meet again until June.
Saudi Arabia on Sunday signalled producers may need to extend the 1.2 million barrels per day of curbs past June into the second half of 2019.
Saudi Arabia has in general been cutting more dramatically than some other countries, while Russia, the largest non-OPEC member in the pact, is less enthused about continuing production cuts.
“As long as the levels of inventories are rising and we are far from normal levels, we will stay the course, guiding the market towards balance,” said Saudi minister Khalid al-Falih.
Brent has gained more than 20 per cent since January 1 due to supply cuts led by OPEC and allies, known as OPEC+, as well as US sanctions on Iran and Venezuela.
Signs of falling crude inventory levels at the US storage hub in Cushing, Oklahoma also supported futures, market participants said.
“The two major things are OPEC and talk of a drawdown in inventory,” said Phil Flynn, an analyst at Price Futures Group in Chicago.
“That’s raising larger concerns about a tighter market when refineries come out of maintenance season.”
Crude stockpiles at Cushing, the delivery point for WTI, fell 1.08 million barrels in the week to Friday, traders said, citing data from market intelligence firm Genscape.
Overall US crude inventories were forecast to have drawn down last week, the second consecutive weekly decline, a preliminary Reuters poll showed.
Surging oil output in the United States has helped to offset OPEC-led curbs.
Analysts at Bernstein Energy said they expect oil demand to rise by 1.3 million bpd in 2019 but a global slowdown could limit growth to below one million bpd.