Meanwhile, US oil production has largely recovered from the shutdowns following Hurricane Harvey, now standing at 9.51 million barrels per day (bpd), up from 8.78 million bpd directly after the storm hit the US Gulf Coast.
Ministers from the Organization of the Petroleum Exporting Countries, Russia and other producers meet on Friday. "I can't see the market tightening unless OPEC cuts output further next year", said Commerzbank strategist Carsten Fritsch.
"There are some rumors around the market that they may either make a call or look to implement an extension of the cutback plan, so that's proving somewhat supportive, although to the extent that they don't, prices could get punished", John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by telephone.
West Texas Intermediate (WTI) crude futures settled up 2 cents at $49.91, close to Thursday's near-four month high of $50.50."They're still working out the aftermath of the hurricanes", said John Kilduff, a partner at Again Capital Management in NY.
"The oil price is on course for a rise of almost 16 percent this quarter, which would make this year's performance the strongest for the third quarter since 2004".
However, that said, 29 per cent of respondents were of the view that the oil exporters should abandon their output cuts and stop handing over market share to United States shale oil producers. US shale production, especially, has been growing to record highs.
According to him, this was caused by production and export of large volume of crude oil and natural gas by US: "So, the US has turned into a exporting country from importing country. The report shows that we're recovering from the hurricane", Rob Haworth, who helps oversee $142 billion at U.S. Bank Wealth Management in Seattle, said by telephone. On September 19, 2017, Iraq's oil minister suggested that the production cut deal could be extended beyond March 2018.
Oil prices settled down as much as 1% on Tuesday as investors took some profit after an early rally sparked by supply drops announced by Iraq and Saudi Arabia, ahead of an OPEC meeting later this week. This has pushed the price curve for oil futures from contango, signifying an oversupplied market, to backwardation, where the back months are cheaper than the front month contract, indicating a tighter market.