Brent, against which half of the world’s oil is priced, rose by $0.84 to $50.69 per barrel as of 7:58pm Nigerian time.
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Traders said the dips during Asian hours were largely due to profit taking in the Americas following sharp price increases during the day there.
West Texas Intermediate for September delivery was at $46.74 a barrel on the New York Mercantile Exchange, down 5 cents, at 11:35 a.m.in Hong Kong.
And, Reuters reported that Saudi Arabia could in August raise its output to new records of between 10.8 and 10.9 million barrels per day.
Oil prices soared in an nearly identical way in August a year ago, shooting up over 25 percent within seven days, only then to start a steady, 50 percent descent to more than decade lows by January 2016.
Analysts however are sceptical that a freeze in production at current levels would help shore up prices.
OPEC members will meet on the sidelines of the International Energy Forum, which groups producers and consumers, in Algeria on September 26-28. Saudi Arabia is sending signals that it could boost its crude oil supplies in August, even higher than its record 10.67 million barrels per day reached in July, as it gets ready for tough talks next month for a global output freeze pact.
Luckily, at least for the oil-price bulls, the U.S. National Oceanic and Atmospheric Administration recently raised its expectations for the Atlantic hurricane season which ends on November 1.
Stephen Innes, senior trader at OANDA, said traders were also in a short-covering mood into the weekend, meaning they are buying back shares sold earlier on expectations prices would rise further.
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Oil prices have hit five-week highs this week, supported by hopes of an agreement between OPEC and non-cartel crude producers to limit excess supplies. OPEC is on course to agree to an output-freeze deal because its biggest members are already pumping flat-out, said Chakib Khelil, the group’s former president. While OPEC is unlikely to take action that changes market conditions, its plans to hold informal talks in Algiers next month “were the spark” behind oil’s rally, according to Morgan Stanley. The contract closed at $49.85 on Wednesday, 19 percent higher than its August low and near the 20 percent threshold for a bull market.
