Saudi Arabia and other key producers in OPEC signaled their intention to keep oil supplies constrained for the rest of the year, while pledging to prevent any genuine shortages.
Oil headed for a monthly gain as expectations that American sanctions on Iranian crude will tighten global markets outweighed the risk to demand from the ongoing U.S.-China trade dispute.
Egypt has said oil shipments from Saudi Arabia to the North African country have been suspended indefinitely, according to a news report.
Oil pared the biggest weekly decline in more than two months as the dollar extended its retreat, increasing the appeal of commodities priced in the U.S. currency.
The global oil surplus in the first half of this year will probably be smaller than previously estimated because of robust demand in India and other emerging nations, the International Energy Agency said.
Growth in global oil demand will ease to around 1.2 million barrels per day (mb/d) in 2016, below the 1.8 mb/d expansion of last year, according to the International Energy Agency.
Explorers once again idled drilling rigs in US. oilfields as crude inventories continue climbing, boosted by a surge in imports.
The influential International Energy Agency sees oil markets rebalancing in 2017 thanks to falling US production but the decline will prove short-lived as efficiency gains will push U.S. output to new records by the beginning of the next decade.
Job cuts, lack of capacity and failure to invest in field development could lead to a oil supply shortage in coming years, according to research by oil and gas consultants Rystad Energy.
Concerns about the climate change impact of burning the world's remaining oil resources mean the reserves will never be fully exploited, BP chief economist Spencer Dale has said.
As I write this, Brent crude is trading at about $130 per barrel. The price has doubled over the last year and quadrupled over the last three.