U.S. unemployment data that showed a tightening labour market was offset by a widening goods trade deficit in April and news of declining inventories, prompting analysts to pare their second-quarter economic growth estimates. Something, anything, to reassert control over global energy markets as US shale producers have ramped up production over the past year, eroding the market share gains OPEC earned when it first launched its oil price war in 2014.

"It is a disappointment that OPEC hasn't done more to balance the markets", he added. "This could be achieved by both expressing the goal of growing future production, and gradually ramping up production to grow market share but keep stocks stable and backwardation in place". The deal involving Organization of the Petroleum Exporting Countries members and Russian Federation was widely expected by analysts, but disappointed investors who were hoping for a longer extension.

Nigeria was exempted from the cut as at then due to activities of militants in the Niger Delta region. The precious metal - trading in a narrowing pattern between $1253-1261 - has seen safe-haven demand (US politics, United Kingdom terror attack) dissipate and, with no Fed speakers scheduled today, focus will likely remain on FX market movements.

Although the journey time from the Middle East to the U.S. Gulf is about seven weeks, once a vessel rounds the Cape of Good Hope, we have a high degree of confidence around the volume heading in the U.S. five weeks later, based our Bayesian modeling.

"A nine-month extension of the output cuts is already baked into prices", said Olivier Jakob, energy markets analyst at Swiss consultancy Petromatrix.

One supportive factor for oil prices have been U.S. data showing seven weeks of draws on domestic crude inventories, said Mark Watkins, regional investment manager at U.S. Bank. This would "certainly" include extending the cuts again if the fundamentals justified doing so, he said.

Meanwhile, the price for July futures of West Texas Intermediate (WTI) has dropped by 0.82 percent and stood at $48.50 per barrel.

Clawing back some of Thursday's losses, Brent crude futures were at $51.80 per barrel at 0755 GMT, up 0.66 percent, from their last close.

"In terms of the threat, we still don't know how much (U.S. shale) will be producing in the near future", Nelson Martinez, Venezuela's oil minister said after the talk. Sustained backwardation in the oil market will be key to restraining shale growth because it would limit access to "large pools" of private equity and credit capital, according to Goldman.

OPEC comprises 13 nations which collectively account for 40 per cent of global oil production, 73 per cent of the world's oil reserves and set the tone for happenings in the oil industry. "The extended low price era forced many of these businesses to get their drilling costs way down, putting them in an excellent position to reap the rewards of a recovering oil price".

While OPEC's move Thursday had been expected, some oil market investors had hoped producers would agree to longer or deeper cuts to drain a global glut of crude supplies.