Investing.com - Oil futures finished slightly higher on Friday, logging their fourth weekly gain in a row with traders encouraged by signs that major crude producers will adhere to the pledge to curb output.
On the New York Mercantile Exchange, crude oil for delivery in February inched up 23 cents, or about 0.4%, to end at $53.99 a barrel by close of trade Friday.
U.S. crude prices touched an 18-month high of $55.24 on Tuesday.
For the week, New York-traded oil futures added 97 cents, or about 1.8%, after posting gains in each of the previous three weeks.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery tacked on 21 cents, or nearly 0.4%, to settle at $56.82 a barrel by close of trade.
Brent prices rallied to $58.37 on Tuesday, a level not seen since July 2015.
London-traded Brent futures logged a gain of 28 cents, or approximately 0.5%, on the week.
Prices tallied a weekly gain amid signals that major oil producers, such as Saudi Arabia and Kuwait, are sticking to their pledge to cut back output.
January 1 marked the official start of the deal agreed by OPEC and non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day.
The deal, if carried out as planned, should reduce global supply by about 2%.
However, some traders remain skeptical that the planned cuts will be as substantial as the market currently expects.
There are also some worries in the market about production increases in Libya and Nigeria, which are both allowed to ramp up production as part of the OPEC deal.
Meanwhile, indications of increased drilling activity in the U.S. remained in focus. According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. last week increased by 4 to 529, the tenth straight weekly rise and a level not seen in almost a year.
Some analysts have warned that the recent rally in prices could be self-defeating, as it encourages U.S. shale producers to drill more, adding to concerns over a global supply glut.
Elsewhere on Nymex, gasoline futures for February shed 0.3 cents, or 0.2% to $1.634 a gallon. It ended down about 2.2% for the week.
February heating oil ticked up 0.9 cents, or 0.5%, to finish at $1.728 a gallon. For the week, the fuel declined around 1.5%.
Natural gas futures for February delivery settled 1.2 cents, or 0.4%, higher at $3.285 per million British thermal units, but still lost 43.9 cents, or 11.8%, on the week, as forecasts of mild January weather replaced predictions of severe cold.
In the week ahead, market participants will eye fresh weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday to gauge the strength of demand in the world’s largest oil consumer.
Traders will also continue to pay close attention to comments from global oil producers for further evidence that they are complying with their agreement to reduce output this year.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Tuesday, January 10
The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.
Wednesday, January 11
The U.S. Energy Information Administration is to release weekly data on oil and gasoline stockpiles.
Thursday, January 12
The U.S. EIA is to produce a weekly report on natural gas supplies in storage.
Friday, January 13
Baker Hughes will release weekly data on the U.S. oil rig count.