'Oil producers to review output cut in April'

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However, the markets continued to remain underpinned by expectations that the OPEC-led supply cuts would stabilize prices and trim the global supply glut.

The decision by the government of Canada's Alberta province to force oil producers to curtail supply will bring the largest reduction to crude output next year, the IEA said. "We believe the (OPEC) cuts were sufficient", Yazhari said, predicting a "relatively balanced oil market" and stable inventories next year.

North Sea Brent crude lost $2.41, or 4.0 percent, to a low of $57.20, a 14-month low, and last traded around $58.06, down $1.55.

Meanwhile, the recent drop in crude prices has impacted a few marginal offshore projects that were set to move forward.

Russia's Energy Minister Alexander Novak announced on Tuesday that the country will cut its oil output by at least 50,000 to 60,000 barrels per day (bpd) in January, which signals that its production will be around 11.35 million bpd next month, slightly lower than 11.37 million bpd last month.

OPEC cuts: sufficient or not?

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Oil investors concerned about supplies due to booming US output and uncertainty over how OPEC and its allies will implement production cuts may have reason to worry about demand as well. It was only a one-week blip, however, as USA imports exceeded exports last week.

"Crude oil prices rose, helped by the easing trade tension, as well as a fall in inventories", ANZ bank said on Thursday. According to PVM, investors have pulled almost $50 billion out of the two major crude oil futures contracts since the latest rout started in October. OPEC includes Algeria, Angola, Venezuela, Gabon, Iran, Iraq, Congo, Kuwait, Qatar, Libya, the United Arab Emirates, Nigeria, Saudi Arabia, Equatorial Guinea and Ecuador. Oil demand growth in Asian emerging markets remains in focus as weaker local currencies and higher crude prices could weigh on countries' purchasing and consuming power, Malaysia's state-owned energy company Petronas cautioned this week.

US West Texas Intermediate (WTI) crude futures were at $51.35 per barrel, up 20 cents or, 0.4 percent.

The International Monetary Fund and the Organisation for Economic Cooperation and Development expect the global economy to expand more slowly next year than forecast six months ago. "As a result of that you could see the market getting quite scared", the strategist said.

Opec, which pumps more than a third of the world's crude, is grappling with an oil glut because of record USA production, tepid global demand as major economies slow down and the U.S. granting of waivers to countries importing oil from sanctions-hit Iran.

"At this point, the OPEC+ cuts appear to have merely put a floor under prices", Societe Generale analyst Michael Wittner said in a note. Brent is trading around $60 as of December 12.