US crude futures extend gains on production cut deal

US West Texas Intermediate crude futures were at $51.10 per barrel by 0037 GMT, up 5 cents from their last settlement

Oil prices extended gains early on Friday as producer cartel OPEC and Russia agreed to rein in a global oversupply in crude on Wednesday with analysts now focusing their attention on implementation of the deal.

"It looks achievable on the face of it, provided the parties to the latest production cut deal stick to their pledges, which has historically been somewhat of a sticking point," ANZ bank said on Friday.

Still, traders said the market was optimistic about Wednesday's historic OPEC-Russia deal to reduce global output and help bring the oil market back into balance.

"This is positive news that will make a sustainable difference to the oil market over the coming months," said Ric Spooner, chief market strategist at CMC Markets adding that it wouldn't be surprising to see this momentum continue.

US West Texas Intermediate (WTI) crude futures were at $51.10 per barrel by 0037 GMT, up 5 cents from their last settlement.

Traders said price developments in crude futures over the coming days would help reflect the market's optimism of the deal.

"WTI has arrived at the peaks from the middle of last year and again in October," Spooner said, which will be a test for the market that may give some insight into how positive traders view this week's agreement.

The Organization of the Petroleum Exporting Countries (OPEC) agreed on Wednesday its first oil output reduction since 2008 after de-facto leader Saudi Arabia accepted "a big hit" and dropped a demand that arch-rival Iran also slash output. The deal also included the group's first coordinated action with non-OPEC member Russia in 15 years.