Asian stocks dropped, turning away from Wall Street's strong performance overnight.
The cuts are likely to be shared again by a dozen non-members led by top oil producer Russia, which reduced output in tandem with the Organization of the Petroleum Exporting Countries from January. Non-OPEC producers meet OPEC later on Thursday.
The Organization of the Petroleum Exporting Countries is to discuss in Vienna whether to prolong an accord reached in December in which it and 11 non-members agreed to cut oil output by about 1.8 million barrels per day in the first half of 2017.
Brent crude futures were trading at $54.39 per barrel at 0651 GMT, up 43 cents, or 0.8 percent, from their last close.
CNBC-TV18's Manisha Gupta gives details about what the commodity markets are expecting from the crucial OPEC meet to be held today.
Brent crude futures were trading at $54.40 per barrel at 0118 GMT, up 44 cents, or 0.82 percent from their last close.
Late last year 24 countries, including those in the Organization of the Petroleum Exporting Countries, agreed to cut production by 1.2 million barrels per day.
The top oil producer in OPEC, Saudi Arabia, favours extending the output curbs by nine months rather than the initially planned six months, to speed up market rebalancing and prevent crude prices from sliding back below $50 per barrel.
"A lot depends on this meeting, at least in the wording," Amrita Sen, chief oil analyst at Energy Aspects, said Wednesday when asked whether oil could surge to $60 a barrel after OPEC's meeting on Thursday.
U.S. Treasury bond yields extended their rise in late trading after a solid 2-year debt auction while euro zone shares closed higher on strong growth data.
Watch the interview of Peter McGuire, Market strategist at FS Securities with CNBC-TV18's Manisha Gupta, in which he shared his views on the OPEC meeting on May 25.
"A nine-month extension would normalize OECD inventories by early 2018, in our view, but we see risks for a renewed surplus later next year if OPEC and Russia's production rises to their expanding capacity and shale grows at an unbridled rate," the Goldman analysts said.
Brent futures rose 26 cents, or 0.5 percent, to settle at $53.87 a barrel, while U.S. West Texas Intermediate crude for June rose 40 cents, or 0.8 percent, to settle at $50.73 per barrel on its last day as the front-month.
Dharmendra Pradhan made the comments in Vienna ahead of OPEC's meeting this Thursday when members will decide whether to extend production cuts to ease the global oil glut that has grown in tandem with rising North American output.
Oil minister Dharmendra Pradhan told Reuters the purchase of a stake in Aramco could be part of a plan by Indian state refiners to set up a refining venture with the Saudi giant.
"After our conversation with the prime minister, he gave the green light to his excellency (the Iraqi oil minister) to approve" the nine-month extension, Falih said.
At the Multi Commodity Exchange, the June month contract of crude oil rose by Rs 34, or 1.04 per cent, to Rs 3,311 per barrel in a business turnover of 2,024 lots.
Oil markets are interestingly poised ahead of a May 25 meeting of the oil cartel, OPEC. The consensus among OPEC-watchers is that the organisation is likely to extend its production cuts.
OPEC's national representatives - officials representing the 13 member countries - plus officials from OPEC's Vienna secretariat - met on Wednesday and Thursday to discuss the market.
Brent crude was up 12 cents at $52.63 at 0006 GMT, after settling up half a percent on Thursday. The contract is on track for a 3.5-percent climb this week, a second week of gains.
Brent crude was down 18 cents, or 0.3 percent, from its last close at $52.03 per barrel at 0244 GMT.
India's April imports from Iraq topped 1 million barrels per day (bpd) for the first time, up by about a third from March and 8 percent from a year ago, according to ship tracking data obtained from sources and data compiled by Thomson Reuters Oil Research & Forecasts.
Brent crude futures were down 53 cents, or 1 percent, from their last close at $51.13 per barrel at 0028 GMT.
In its monthly report, the IEA kept its global demand growth forecast for 2017 unchanged at 1.3 million barrels per day (bpd), because of slowdowns in previously robust consumer countries such as the United States, Germany and Turkey.
Since the start of the calendar year the rupee has gained nearly 6 percent against the dollar and 2 percent against emerging market currencies, largely on account of glad tidings on the economy and political fronts. Post demonetisation, it has gained from a strong showing by the BJP in the U.P. election and from parliament clearing hurdles for a GST launch. Crude oil prices continue to remain range-bound, with the OPEC nations curtailing oil production.