The Organization of Petroleum Exporting Countries and allies including Russian Federation agreed to extend output cuts to the end of this year to reduce global inventories.
Oil prices closed at fresh three-year highs Tuesday, as geopolitical risk and confidence in global growth continued to buoy markets.
Iran said on Tuesday that OPEC members were not keen on increased prices.
US West Texas Intermediate (WTI) crude futures were at $61.62 a barrel at 3.44am GMT, 18c or 0.3% above their last settlement, and not far off the $62.21 May 2015 high reached last week.
Supply reports this week from industry group the American Petroleum Institute and the US government's Energy Information Administration are expected to show USA crude stocks fell 3.9 million barrels, an eighth week of decline. The API releases its data on Tuesday at 4:30 p.m. EST and the government report is scheduled for Wednesday at 10:30 a.m.
Saudi Arabian Oil Co.is set to appoint banks, including Goldman Sachs Group Inc. and Citigroup Inc., to help manage its initial public offering, people familiar with the matter said, as the state-owned crude producer pushes ahead with what could be the world's largest share sale.
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The market has rallied in recent weeks as investors bet on an increasingly tighter market, aided by data showing declining USA stockpiles and threats to supply from major producers such as Iran and Venezuela.
Nationwide output will average 10.85 million barrels a day next year and 10.27 million this year, both surpassing the prior record of 9.6 million pumped in 1970, the Energy Information Administration said in its monthly Short-Term Energy Outlook, which included the first estimates for 2019.
Pump jacks bring oil up from wells in North Dakota.
Adding to the positive sentiment, analysts expect global economic growth to lead to higher demand for oil.
Some in OPEC are anxious a prolonged rally could stimulate more USA shale oil output, however, creating more oversupply that could weigh on prices and market share.
Rising U.S. production and weaker refined products demand weighed on the market, traders said. "But for now, the bullish trend remains intact as prices remain above key supports".