Meanwhile, global supply remains at risks amid the recent restriction of the flow of diluents to Venezuela, along with sky-high risks to Libya's output and boiling tensions in the Gulf, suggesting fundamental support remains.
Oil prices rose on Monday after Saudi Arabia said producer club OPEC and Russian Federation should keep supplies restricted at current levels, and in relief that the United States withdrew a tariff threat against Mexico, removing a cloud over the global economy, reports Trend citing to Reuters.
Traders said crude prices were rising because of statements by OPEC's biggest producer Saudi Arabia on Friday saying that the group was close to agreeing extending supply cuts.
Front-month Brent crude futures, the global benchmark for oil prices, were at $63.61 at 0411 GMT, 32 cents, or 0.5%, above Friday's close.
Despite this, MacPherson said "there is a limit to how much longer it (OPEC+) can continue to avoid addressing the serious challenge of being squeezed out by growing US production". The comments, along with remarks from Saudi Arabia, bolstered expectations the deal will be renewed.
Morgan Stanley has said that demand by major consumers including the United States, China, Japan, Australia, South Korea, Brazil, India, and Thailand has been notably weak-and those eight countries represent 48 percent of global oil demand.
"This effectively gives us an extra 300,000-400,000 barrels per day of supply", said Fesharaki.
Brent crude futures rose 2.7%, to $63.33 a barrel, while U.S. West Texas Intermediate crude futures also rose 2.7%, to $53.99/Bbl.
The Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers including Russian Federation, known collectively as OPEC+, have withheld supplies since the start of the year to prop up prices. The OPEC and non-OPEC members are due to decide about the extension of a crude oil output cut.
"It is proving hard work papering over a suite of rather less supportive data being digested by the market", said analysts at JBC Energy in Vienna.
FGE said global crude oil demand growth could drop below 1 million barrels per day (bpd) in 2019, down from previous expectations of 1.3 to 1.4 million bpd.
OPEC+ has been trying to stop inventories building up and the latest weekly reports from the United States are expected to show a small, 500,000-barrel decline in stocks.