Oil rose for a fourth session in a row on Monday buoyed by the prospect that top exporter Saudi Arabia will push OPEC and may be Russian Federation to cut supply towards the end of this year.
Front-month Brent crude oil futures were at $67.29 per barrel at 0259 GMT, up 53 cents, or 0.8 percent, from their last close.
Earlier in the session, IEA's Birol said that significant production cuts could be negative for markets, adding that United States exemptions of sanctions against Iran have surpassed market expectations, motivating prices to correct lower.
The Organization of the Petroleum Exporting Countries (OPEC), de-facto led by Saudi Arabia, is pushing for the producer group and its allies to cut 1 million to 1.4 million barrels per day (bpd) of supply to adjust for a slowdown in demand growth and prevent oversupply.
Russian Energy Minister, Alexander Novak, said on Monday that Russia, which is not an OPEC member, planned to sign a partnership agreement with the group, and that details would be discussed at OPEC's December 6 meeting in Vienna.
With OPEC ministers meeting on December 6 in Vienna to decide on production policy for the next six months as crude inventories around the world steadily build, the question becomes, can the announcement of a cutback from the cartel produce a swift price rebound?
Despite Monday's gains, Brent is nearly 25 per cent below early October's 2018 peak of $86.74, as evidence of slowing demand has materialized and output from the United States, Russia and Saudi Arabia hit historic highs.
A trade dispute between the United States and China is one reason investors are a lot warier about the outlook for oil demand growth next year.
This comes in part after Washington granted Iran's major oil customers, mostly in Asia, unexpectedly broad exemptions to sanctions it re-imposed on Tehran in November.
US West Texas Intermediate (WTI) crude futures, were up 71 cents, or 1.3 percent, at $57.17 per barrel.
USA energy firms added two oil rigs in the week to November 16, bringing the total count to 888, the highest level since March 2015, a weekly report by energy services firm Baker Hughes said on Friday.