Oil prices edge up on expected OPEC output cuts, but swelling US supply caps gains
US West Texas Intermediate (WTI) crude futures were at $51.55 per barrel at 0203 GMT, up 10 cents, or 0.2 percent from their last settlement.
international Brent crude oil futures were up 15 cents, or 0.3 percent, at $59.66 per barrel.
Despite the firmer prices, crude oil has lost almost a third in value since early October because of an emerging supply glut following a global surge in production, including from the United States, Russia and by the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC).
To rein in the glut, ANZ bank said on Friday that OPEC and its main partner Russia were "moving closer to an agreement around further production cuts".
OPEC and Russia will gather on December 6 and 7 in Vienna to discuss output policy.
Before that, the world's top three producers - the United States, Russia, and Saudi Arabia - will be part of a meeting of the Group of 20 industrialized nations in Buenos Aires, Argentina, this weekend.
Part of the glut is swelling supply in the United States, where commercial crude oil inventories rose by 3.6 million barrels in the week to November 23 to 450.49 million barrels, according to the Energy Information Administration (EIA). Production remained at a record 11.7 million barrels per day (bpd).
Crude reserves increased 6.4 billion barrels, or 19.5 percent, to 39.2 billion barrels at year-end 2017, marginally higher than the previous record of 39 billion barrels set in 1970, the EIA said.
"With fears over excessive supply and worries about falling demand the primary themes weighing on oil markets, the outlook for Brent Crude and WTI remain bearish," said Lukman Otunuga, an analyst at futures brokerage FXTM.
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