At Thursday's meeting in Vienna the Organization of the Petroleum Exporting Countries and some non-OPEC producers agreed to extend a pledge to cut around 1.8 million barrels per day (bpd) of output until the end of the first quarter of 2018.
Precise details of OPEC's production cut haven't been made public yet, but The Wall Street Journal is reporting OPEC members agreed to extend their 1.2 million barrels per day production cut deal until March 2018.
United States crude prices were flat at $48.88 on Friday, after losing 4.8 percent overnight, and were set to end the week 2.8 percent lower.
"Following the meeting, we have seen both Brent and WTI trading lower on the news as a proportion of the market had priced in the potential for deeper cuts".
OPEC countries and 11 other oil-producing nations, including Russian Federation, first agreed to reduce production last December in an effort to boost flagging prices.
Analysts criticized OPEC for failing to slash oil production which led to the falling prices of oil.
Petrol prices are at their lowest since last autumn, with experts predicting that oil cartel Opec's campaign to drive up the price of oil could fail.
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Making the long oil trade all the more hard is that high USA oil inventories mute the impact of output reductions by OPEC and other countries, indicating that oil bulls need to focus on other factors.
Less oil on the market normally means higher value per barrel. But it also spurred growth in the US shale industry, which is not participating in the output deal, thus slowing the market's rebalancing.
During the meeting, Khalid al-Falih reportedly said, while the oil market is on its way to recovery, "more time is needed" before oil supplies can be expected to return to their five-year average. That, in turn, is increasing supply and keeping a lid on price gains.
Nigeria and Libya will remain exempt from making cuts while Iran would be allowed to retain the right to increase production to the same reference level, around 3.797 million barrels a day, agreed in November past year.
This sent Brent Crude futures down to $51.63 a barrel on Friday (26 May), with oilfield services group Petrofac leading the losers on the FTSE 100, shedding 9.4% by mid-afternoon.
In general, the oil supply remains high, which has and will offset OPEC's output cut effort to an extent. American oil production has risen over 6% since the start of the year.