Earlier in the month, The International Energy Agency estimated that global oil demand growth will slow from 1.4 millions of barrels a day (mb/d) in 2016 to 1.2 mb/d in 2017.
Brent crude hit a six-week high above US$50 a barrel overnight, as the world's biggest producers discussed a possible freeze in production levels. US stocks ended higher Wednesday after minutes from the Federal Reserve's July meeting showed officials wouldn't commit to raising rates until a stronger consensus could be reached on the outlook for growth, hiring and inflation.
Crude oil prices were flat on Friday in Asia with U.S. Western Texas Intermediate at $48.36 a barrel while European Brent crude was at $50.89 a barrel around 11.30am HK/SIN time.
A meeting is set to take place next month with regards to potential output freeze between the Organization of the Petroleum Exporting Countries (OPEC) and other oil producers such as Russian Federation.
Brent ended the session up 2.09 percent at $50.89.
Many OPEC members, including Nigeria, have been hurt badly by a collapse in oil prices over the last two years.
Some Gulf oil exporters have very low output costs, but other producers such as Iran and Venezuela need oil prices above US$100 in order to balance budgets.
Hope for an OPEC freeze deal has caused both crude benchmarks to rise over 20 percent from the lows of early August.
Saudi Arabia, OPEC's top producer, and non-OPEC member Russian Federation have hinted at cooperation on market stability ahead of the September meeting.
The return of oil production in Canada and Nigeria after supply disruptions, combined with a strengthening United States dollar, later pushed the market into reverse and sparked fears that further losses could undermine the global price recovery.
If the number pushes above 400, USA oil production will reverse its declining trend, said Hynes at ANZ.
OPEC members and non-OPEC rival Russian Federation are to meet informally in Algeria next month, as reports suggest that OPEC member Saudi Arabia is ramping up production to fresh record levels after an all-time high of 10.67 million barrels per day in July.
Analysts at Citi also warned of the risks of a price rally based largely on potential future talks on freezing crude output levels given that similar meetings earlier this year failed to produce any such agreement.