A committee of ministers from OPEC and outside producers agreed on Sunday to look at prolonging the deal, stopping short of an earlier draft statement that said the committee recommended keeping the measure in place.
Prices for front-month Brent crude futures, the international benchmark for oil, eased 7 cents from their last close to $50.73 per barrel by 0145 GMT.
Brent crude futures, the international benchmark for oil, were at $51.02 per barrel at 0451 GMT, up 38 cents, or 0.8 percent, from their last close. That came after Brent briefly dipped below $50 a barrel on Wednesday for the first time since November.
Oil prices inched up on Monday in anticipation of tighter crude supply going into 2017 following the decision by OPEC and other producers to cut output to prop up prices.
Equity benchmarks as well as broader markets remained rangebound in noon trade with the Sensex hovering around 26500 level. Technology stocks continued to support the market whereas selling pressure was seen in banks, FMCG, select metals and pharma stocks.
The Organization of the Petroleum Exporting Countries (OPEC) said Friday that its output rose to 33.64 million barrels per day (bpd) last month, up 240,000 bpd from September.
Most markets shook off post-election losses and bounced back on Thursday, but oil still faces a glut that has kept prices under pressure for much of the past two years.
Brent crude, the benchmark for two-thirds of the world's traded oil, will likely average USD 49.60 a barrel for the fourth quarter, up from almost USD 47 a barrel in the prior quarter, the survey of 31 commodity strategists, analysts and economists showed.
Brent crude, slipped 0.2 percent to USD 53.05 a barrel after surging as much as 3 percent on Monday. US crude futures dipped a similar amount to USD 51.26, after jumping to a four-month high in the previous session.
Speaking to CNBC-TV18 John Kilduff, Partner at Again Capital said that prices could move up further. He expects the price to head up to USD 52 a barrel.
Axis Bank was the biggest loser, down nearly 4 percent followed by ITC, Lupin, ICICI Bank, HUL and Tata Motors whereas BHEL gained the most, up 2 percent. Reliance Industries, HDFC Bank, TCS, ONGC and HDFC were other gainers.
Tata Steel, ONGC, Cipla, Maruti and Lupin were top gainers while Adani Ports, Hero MotoCorp, Bajaj Auto, Bharti and BHEL were losers in the Sensex.
TCS, ICICI Bank, Adani Ports, ONGC and Asian Paints top gainers in the Sensex while Maruti, Bajaj Auto, Hero MotoCorp, Axis Bank and HDFC Bank are losers in the Sensex.
ONGC, Wipro, TCS, GAIL and Relaince were top gainers while Axis Bank, Bajaj Auto, ITC, Hero MotoCorp and HDFC were losers in the Sensex.
IT index was down 2.5 percent while TCS, BHEL, Wipro, GAIL and Infosys were losers in the Sensex. Among gainers were Sun Pharma, Bajaj Auto, Tata Steel, Maruti and Hero MotoCorp.
Global crude supply would still exceed demand in the third quarter and by fourth quarter, one would see a balance in supply and demand, said Azlin Ahmad of Argus Media.
Speaking to CNBC-TV18, Jodie Gunzberg, Global head, Commodities S&P Dow Jones Indices, said oil has been having major ups and down. Its volatility is only just over 35 percent, slightly above long-term average.
International Brent crude oil futures were trading at USD 49.34 a barrel, down 1.2 percent, from their last close. US West Texas Intermediate (WTI) crude was down 1.68 percent, at USD 47.29 a barrel.
Prices have roared back to enter a bull market, rallying more than 20 per cent from lows seen earlier this month when they pushed below USD 40 a barrel for the first time since April.
SBI was down 2 percent while Adani Ports, M&M, GAIL and Sun Pharma were losers in the Sensex while Lupin, ITC, ICICI Bank, Reliance and Asian Paints were losers in the Sensex.
Adani Ports, Bank of Baroda, TCS, YES Bank and Zee Entertainment were top gainers while ACC, Grasim, Idea, Lupin and Ambuja were losers in the Nifty.
The monthly hiring data will help investors gauge the health of the economy and possibly offer insight as to when the Federal Reserve will raise interest rates again.
Europe got off to a solid start, climbing almost 0.3 percent as takeover activity continued in the UK gambling sector and talk of record profits at Ryanair helped break some of the recent gloom around airlines.