Oil prices traded close to five-month highs on Tuesday after key Middle Eastern producers showed they continued to comply with output cuts under an OPEC-led deal that Iraq’s oil minister said could be extended or deepened.
A weaker U.S. dollar also lent support to dollar-denominated commodities such as oil, traders said.
Benchmark Brent crude futures were up 20 cents at $55.68 a barrel by 1200 GMT, not far off a five-month high of $55.99.
U.S. West Texas Intermediate (WTI) crude futures were up 35 cents at $50.26.
Sentiment has been buoyed since last week when the International Energy Agency (IEA) lifted its 2017 demand outlook and the Organization of the Petroleum Exporting Countries estimated that the world would need more of its crude next year.
“The bullish trend for oil is fed by a few factors, like upward revisions in oil demand from OPEC and the IEA, Saudi Arabian exports dropping to a three-year low in the summer and, last but not...