Saudi Arabia led suppliers to cut production two years ago to curb a glut, then reversed course in June on concerns that US sanctions on Iran could create a shortage.
Oil prices in London and NY jumped more than 4 percent on Monday as the pact raised speculation OPEC and its allies will agree to cuts when they meet in Vienna.
At last week's G20 meeting in Buenos Aires, Saudi Arabia and Russian Federation agreed to extend their crude oil production cuts in an effort to raise the price of benchmark Brent crude back to around $70 a barrel, about $10 higher than it traded for on Friday.
It is expected the outcome of this week's OPEC meeting will result in a supply cut, which would be aimed at reining in emergent oversupply. The Saudi-Russian agreement has added about 4% to the price of Brent and West Texas Intermediate (WTI) in early electronic trading Monday morning.
"You're going to have a ballet and concert of various statements that are either contradictory or reinforcing leading up to the OPEC meeting", said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas in London.
On Friday, oil prices extended losses as piling stockpiles further dampened entrenched concerns over supply surplus, offsetting to some extent market expectations on potential output cut from OPEC and its allies.More news: Ohio State edged out of College Football Playoff
But since reaching four-year highs in October, oil prices have plunged around 30 percent as worries about falling demand in a slowing world economy have taken their toll. Separately, the Energy Information Administration said oil USA field production of oil fell to 344 million barrels in September from almost 352 million in August.
That growing belief saw oil prices trim early falls on Friday. The province will reduce production of raw crude and bitumen by 8.7 percent starting in January until the levels of excess oil in storage are drawn down. WTI fell 1.27 USA dollars to settle at 50.29 dollars a barrel, while Brent fell 1.72 dollars to close at 58.76 dollars a barrel.
International Brent crude oil futures were up $2.18 per barrel, or 3.7%, at $61.64 a barrel. Its November production surged to an all-time record above 11 million barrels a day as prices swooned, prompting a jubilant response on Twitter from the White House. It ended November down around 20.3%. USA crude oil imports averaged 8.2 million barrels per day, up by 608,000 barrels per day from the previous week.
OPEC will meet on December 6 in Vienna to deliberate on the output cut after the oil price slumped to the biggest monthly drop since the global financial crisis in 2008.
Friday saw Baker Hughes report that the number of active domestic rigs drilling for oil rose by 2 to 887 last week.