Oil prices eked out gains despite a stronger dollar and rising U.S. oil rig count, as hopes that OPEC might agree to limit production cuts at the end of the month boosted sentiment.
The Organization of the Petroleum Exporting Countries is moving closer to finalizing its first deal since 2008 to limit output, with most members prepared to offer Iran flexibility on production volumes, ministers and sources said.
Iran has been the main stumbling block for capping production, and while it has not yet responded to the proposal, it suggests OPEC members may be coming nearer to a consensus ahead of their meeting in Vienna on Nov. 30.
Prices, however, were depressed by a stronger U.S. dollar, which reached its highest levels against a basket of currencies since 2003 after U.S. Federal Reserve Chair Janet Yellen said that a rate increase could happen "relatively soon," indicating higher chances of a hike in December.
A stronger dollar makes oil, which is priced in the greenback, more expensive to buyers using other currencies.
Oilfield services firm Baker Hughes reported the largest weekly rise in its count of oil rigs operating in U.S. fields since a recovery began at the end of June. The count rose by 19 rigs to 471 in the last week.