Oil prices firmed above $56 this morning to extend a recovery after a steep dive last week, as some Opec members raised the prospect of deeper supply cuts.
US crude was trading 28 cents higher at $56.59 by earlier this morning, having fallen by nearly 8 per cent last week. London Brent crude rose 29 cents to $55.93.
Oil prices climbed 1.3 per cent on Friday, recovering from a near three-dollar decline on each of the previous two days.
Oil prices were also lifted by supportive US jobs data, which eased fears of a sharp economic slowdown in the world's top consumer, analysts said. The US Labour Department said a better than expected 167,000 jobs were created last month.
Opec members agreed last month to cut 500,000 barrels of oil per day in output starting from February, but crude prices have continued to fall on growing US fuel inventories and unusually mild weather in the world's top oil consumer.
Oil prices have fallen nearly 30 per cent from the $78.40 peak seen in July last year, and some analysts say it may be difficult for prices to bounce back quickly.