Oil prices surged over 12 percent on Wednesday after OPEC representatives reached a landmark deal to reduce oil output to drain a global supply glut.
OPEC's deal on production has unexpectedly received buy-in from the organization's top producers and drove prices up more than 8% on world markets.
Qatar's Energy Minister Mohammed Bin Saleh Al-Sada said non-member Russian Federation committed to reducing its output by 300,000 bpd, half of a hoped-for 600,000 bpd reduction from outside the organisation.
OPEC on Wednesday agreed to reduce its combined output by 1.2 million barrels a day, the upper end of expectations of 0.7 million to 1.2 million barrels, for six months from January.
Algeria, Kuwait, Venezuela and two participating non-OPEC countries will serve on a committee "to closely monitor the implementation of and compliance with" the agreement. Opec has 13 major oil producing and exporting countries, including Saudi Arabia, Iran, and Iraq which together account for a third of global oil output - as members.
Oil prices slipped on Friday as some investors opted to cash out after Brent touched 16-month a high on Thursday, with optimism over this week's OPEC-Russia accord on cutting output giving way to questions on the "sticking point" of implementing the deal.
USA light crude oil rose $2.32, or 4.7 percent, to $51.76 a barrel, and was approaching a 2016 high of $51.93. U.S. West Texas Intermediate (WTI) crude futures also rose back above $50, trading at $50.11 a barrel, Reuters reported.
Li Li, energy research director of energy market consultancy ICIS China, added, "Despite the fact that the OPEC deal to curb crude oil production might help bolster global oil prices in the short term, oil prices won't soar despite a recovery in the short term". "An additional cut of 0.6 million bpd from non-OPEC countries could significantly add to what has been announced by OPEC". Shale oil technology has allowed some oil companies to cut productions costs dramatically to $15 per dollar in the same rank as OPEC member Iran. The cuts will likely trigger inventory draws in the first half of 2017, according to UBS, while Morgan Stanley says the energy industry is likely to see another wave of "notable" investments within the U.S.as well as in other regions.
Brent crude prices climbed to a five-day high of $53.37 on Thursday, up from a closing price of $51.84 on Wednesday.