OPEC+ Said to Weigh Bigger Production Cut

Brent crude, the European benchmark, was trading just above $65 a barrel while USA crude futures stood just below $56 - its lowest mark for 12 months. The oil cartel expects oil demand to grow by 1.29 million barrels per day in 2019, down 70,000 bpd from its projection last month.

However, Russia's key partner in the production cut deal, Saudi Arabia, has expressed concern over the oil price slump in the past month.

President Vladimir Putin said he discussed the price of oil with USA counterpart Donald Trump when they met in Paris briefly on Sunday, adding that Russian Federation is happy with current prices.

The BSE oil and gas index was among the top sectoral gainers rising 2.16% or 292 points to 13,852 level.

Oil struggled to find its footing on Wednesday after plunging 7 percent the previous session, with surging supply and the spectre of faltering demand scaring off investors.

Fearing a renewed glut like in 2014, when prices crashed under the weight of oversupply, the Organization of the Petroleum Exporting Countries (OPEC) is discussing supply cuts.

The reason being that the sanction coincided with when OPEC was duly guided to monitor oil supply quota allocated to countries that are its members, while at the sametime, placed a ceiling on the barrels of oil produced daily by some members, including Nigeria.

"It is becoming clearer that as we move closer towards 2019, the market will see a sizeable surplus at least over the first half of 2019", ING said.

Financial firms hedging the risk incurred by selling put options to oil producers generated added downward pressure when prices fell toward option strikes, Goldman Sachs said in a note.

Global benchmark Brent crude oil futures were down 9 cents at.38 per barrel.

The IEA also cut its forecast for demand for OPEC crude by 300,000 bpd in 2019.

What has been made apparent by OPEC and the IEA is that oil demand growth is slowing, while oil supply, most notably from the U.S. is rising to record levels at a rapid rate.

Much of the expectations of the supply cuts were driven by earlier comments from Khalid Al-Falih, energy minister for Saudi Arabia, who told media that producers need to cut about 1 million barrels per day (bpd) from October production levels.

Oil rose, ending its longest string of declines amid strengthening signals that OPEC and allied producers are considering production cuts as soon as next year. It was just a little over a month ago when the price of oil spiked at $76 a barrel around the first of October.

Meanwhile, in the USA, crude inventories rose by 10.27 million barrels last week, while gasoline and distillate supplies declined, according to a report from the Energy Information Administration on Thursday.