As of 0653 GMT, brent crude futures were at US$52.08 (RM224.66) per barrel, up 26 cents, or 0.5 per cent, from their last close.
At the end of November, the Organization of Petroleum Exporting Countries (OPEC) agreed to cut output by 1.2 million barrels per day (mb/d) from January 1, initially for a period of six months. US light crude was 25 cents higher at $49.10 a barrel.
On Monday, Russian and Saudi energy ministers said in a joint statement that Moscow and Riyadh meant to propose a 9-month extension of the current Vienna agreement on oil output cuts on the existing conditions at the OPEC ministerial meeting in late May.
Russian Energy Minister Alexander Novak said the proposed extension of output cuts aimed to bring global commercial oil inventories down to the five-year average and stabilize the market.US bank Goldman Sachs said the deal would likely extend the oil price rebound "although the rally so far.has remained modest compared to the move that occurred last year when the OPEC cuts were first announced". Kuwait also backs the plan, Oil Minister Issam Almarzooq said Tuesday.
Crude oil prices surged almost 2.5% to their highest level in two weeks after the world's two biggest producers agreed in principle to extend a deal on output restraint through March of next year.
Run TV station under attack in east Afghanistan
The Taliban also has a strong presence in the area but the group said it was not involved. At least 16 people, including journalists, were wounded in the attack.
The oil market has essentially reached a balance and will continue to accelerate in the near term, the International Energy Agency (IEA) said in its monthly report published Tuesday, just nine days before OPEC's much anticipated ministerial meeting.
The IEA noted that the April supply figure of 96.17 million bpd was 90,000 bpd lower than in April 2016, but added that non-OPEC output this year is set to rise by 600,000 bpd, which will offset OPEC's and its partners' 1.8-million-bpd pledged reduction in global supply only partially. The contracts closed 98 cents and $1.01 higher Monday, buoyed by Saudi Arabia and Russian Federation saying they were willing to do "whatever it takes" to bring global oil inventories back to their fiveyear range.
Supplies of gasoline probably dropped 1 million to 240 million barrels while inventories of distillate fuel, a category that includes diesel and heating oil, slipped 1.25 million to 147.5 million barrels last week.
The first source familiar with Iranian thinking said it was necessary to support prices to ensure there is enough investment in supplies to avoid shortages in future, echoing a view often expressed by Saudi Arabia.
But the rebound has emboldened producers beyond the two dozen nations that have curtailed output, particularly USA shale drillers that rely on expensive production methods to unlock oil and gas from rock formations.
- Michael Moore prépare un nouveau documentaire sur Donald Trump
- Tottenham fans react to Kieran Trippier's performance, compare him to Kyle Walker
- This runner plans to finish a marathon in less than two hours
- Betts, Bradley go deep to lift Red Sox over Cardinals 6-3
- France: Macron et Philippe en quête d'un gouvernement rassembleur
- Four US Service Members Have Died In The Last Week
- Trump's National Security Advisor: WannaCry Attack 'Under Control'
- OM - Mercato : Rudi Garcia compte sur Rémy Cabella
- Le nouveau Premier ministre annoncé à 14h30, Edouard Philippe pressenti — France
- Un candidat EELV pose habillé en femme, il perd son investiture — Législatives