WTI and Brent crude oil edge away from yesterday highs

The pact now runs to March 2018.

The production cuts have helped drain inventories in the US and elsewhere in the developed world, but crude prices have still remained stuck below the Saudi target of $60 a barrel. The country's Crown Prince, Mohammad bin Salman spoke of a new future for Saudi Arabia and re-iterated Al-Falih's comments on the oil market, adding that the Saudi government will work with all OPEC and non-OPEC countries and "will support anything to stabilise the oil demand and supply".

The worldwide benchmark rose as high as $60.53 before 1930 GMT, gaining 2 percent after closing at $59.30 Thursday. West Texas Intermediate crude rose $1.17, or 2.2 percent, to $53.81 a barrel on Friday, near a almost eight-month high. "At the end of the day, crude oil demand is only one part of the equation".

Oil on track for weekly gains of 2%.

USA drillers added one oil rig in the week to October 27, but the rig count fell by 13 for the month, the biggest such decline since May 2016, data showed on Friday.

Oil prices have moved higher this week on speculation that the Organization of the Petroleum Exporting Countries (OPEC) will agree to extend a deal to cut levels of production in order to rebalance the market.

A weaker dollar makes greenback-denominated commodities, including oil, cheaper for holders of other currencies.

OPEC and some major producers outside the cartel, including Russian Federation, first agreed late a year ago to cap their production at around 1.8 million barrels a day lower than peak October 2016 levels, with the aim of alleviating global oversupply and boosting prices. Total U.S. crude stockpiles rose by 856,000 barrels, halting four weeks of declines, the EIA said.

"If OPEC and their non-OPEC partners can agree to extend their production curtailments through 2018, then we estimate the oil market will remain in modest under-supply until 2019", USA investment bank Jefferies said. While demand has yet to catch up to elevated supplies, rebounding economies in Europe and steady economic growth in the USA could at least keep oil prices steady around current levels in the second half of 2017.

Rising U.S. crude production remains an issue for OPEC as it strives to clear a global supply overhang.