So the iPath S&P GSCI Crude Oil Total Return Index ETN (OIL), climbed 0.8%, extending yesterday's almost 4% surge, and the U.S. Oil Fund (USO) rose 0.9% to $9.94.
OPEC on Thursday sharply raised its forecast for oil supply from non-member countries in 2017 as higher prices encourage US shale drillers to pump more, hampering the producer group's efforts to clear a glut and support prices by cutting output. Saudi Aramco will reduce supplies to Asian customers by about 7 million barrels in June.
Brent crude futures, the global benchmark for oil prices, were at $49.85 per barrel at 0020 GMT on Monday (8:20 p.m. ET on Sunday), up 75 cents, or 1.5 percent, from their last close.
Amid this announcement, oil prices rose on Thursday, with benchmark Brent crude trading comfortably above $50 a barrel after a fall in US inventories and a bigger-than-expected cut in Saudi supplies to Asia helped tightened the market. With less than three weeks to go before the group's next meeting, the oil price is not far off where it was in November, before OPEC and non-OPEC states agreed to cut output.
West Texas Intermediate crude oil traded up 1.6% at $46.94 a barrel after weekly US Energy Information Administration inventory data showed a bigger drawdown than expected.
Brent was 60 cents higher at $50.82 a barrel by 1255 GMT after hitting an early high of $51.09.
"Chief among (the) oil market's worries is that the renewed rise in United States oil production is reducing the speed at which the supply surplus is being eroded", said Fawad Razaqzada, market analyst at Forex.com told Reuters.More news: Rouhani looks to beat hard-liner as Iran prepares to vote
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Crude prices were modestly higher during the course of the session on Thursday in Asian trading, building an overnight gains, following a much better-than-expected reports on US inventories. Equatorial Guinea, which is Africa's third largest oil producer, said it had support from Saudi Arabia to join OPEC.
Russian Energy Minister Alexander Novak on Monday backed extending oil output curbs, saying it would help speed up a return to a healthier market.
Russian Federation said yesterday it was discussing prolonging cuts with other producers beyond 2017, without giving a clear timeline.
The report will add to a debate about the effectiveness of the cut, which is expected to be extended when producers meet later this month.
World oil demand growth for 2017 was left unchanged at 1.27 million barrels per day with non-OECD countries leading the growth.
"Chief among (the) oil market's worries is that the renewed rise in US oil production is reducing the speed at which the supply surplus is being eroded", Fawad Razaqzada, market analyst at Forex.com, said in a note.