The oil markets were on the alert on Friday as traders watched a tropical storm heading towards the Gulf of Mexico as Chinese markets remained closed for a week-long public holiday.
But the prospect of extending oil production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers outside of Russia led by Russia helped to boost prices.
By 0650 GMT, WTI crude fell 16 cents from the previous settlement to $ 50.63 a barrel, according to Reuters.
Brent crude <LCOc1> fell 12 cents to $ 56.88 a barrel.
The activity was limited by China’s “Golden Week” holiday and customers were monitored for the tropical storm “Nit”, which led to the closure of refineries and a halt to production on the Gulf of Mexico just weeks after the region was hit by several hurricanes.
The agreement to cut oil production by 1.8 million barrels per day came into effect in January and is due to expire at the end of March 2018.
With the possibility of extension cuts, analysts raise their expectations for crude prices.