Oil prices ended the previous session as growing confidence that major oil producers would agree to extend the supply cuts and speculation that the cut could be deepened further pushed prices to their highest prices in more than a month.
Prices were because of the expectations that the Organization of the Petroleum Exporting Countries and other producers including Russia, would extend the deal at their meeting, which will be held on May 25 in hopes to solve the oversupply problem by cutting down productions to 1.8 million barrels per day for the next six to nine months.
There was also a rumors that a deeper cut down on the oil production might be in order but rumors like these could lead to a disappointment if it is not approved.
U.S. energy companies added oil rigs, which bumped its production by another 10 percent, reaching 900,000 barrels per day, since mid- 2016 to 9.3 million.
In addition to that, if OPEC cuts productions farther, oil prices would spike up which could cause consumer to look for other sources of energy and alternative suppliers.
Brent futures rose by 26 cents which is equal to 0.5 percent to settle at $53,87 per barrel, while the U.S. west Texas Intermediate crude futures for June was up by 40 cents, an increase of 0.8 percent to trade in the market at $50.73 per barrel in the last day.