Crucial Opec-non Opec meeting on global output deal on Dec 10

While the group plans to hold talks with non-0PEC producers next week in Doha, OPEC will meet again on May 25 next year, at which point it intends to extend the cuts by another six months. Azerbaijan said it was also willing to discuss cuts.

"Secondly, it is likely that the slowdown in production by non-Opec members (which are not directly involved in the output cut deal) will experience a reversal, particularly by the USA shale producers", it explained.

Oil futures scored a weekly gain of over 12% amid growing hopes that OPEC's output deal will help shrink the glut of crude supplies and prop up prices.

WTI Crude is now up 0.12 percent on the day at $49.50 per barrel, with Brent Crude up 0.21 percent at $51.95 per barrel (0858GMT).

"The lack of firm output commitments from some non-OPEC producers may not be a major cause of concern, but the threat posed by non-compliance and the potential for us shale operators to spoil the party should not be ignored", brokerage PVM Oil Associates said.

It's no secret that the various crude oil stocks have had a hard time over the last couple of years.

February Brent traded a record 783,000 lots of 1,000 barrels each on Wednesday, easily beating a previous record of just over 600,000 reached in September.

After sinking in overnight trading, West Texas Intermediate crude, the main North American contract was up 28 cents at midday to $51.33 USA a barrel.

While the agreed-upon cap for Iran leaves some room for growth above current levels, it is below the historic production high the country aims to retake, letting Saudi Energy Minister Khalid al-Falih walk away from the table claiming at least a partial win.

Dr Ibe Kachikwu, the Minister of State for Petroleum Resources, said the development was good for Nigerian economy. "The outcome is consistent with. what OPEC production levels were expected to be in 2017 irrespective of the deal reached".

In the past, OPEC - a consortium of 13 oil-producing developing countries - has oversupplied oil in order to maintain its market share. Oil at that level would lead to a "sizeable shale response", adding 800,000 barrels a day in 2017 versus oil at $45, the bank said, reiterating its WTI crude forecast of $50 for the second half of next year.

According to the Ministry, the deal saw Saudi Arabia agree to take on the highest burden of cuts - a 486,000 barrels a day cut to its output, while efforts are on to persuade Iraq to reach a decision to reduce its output, as well as getting non-OPEC producer Russian Federation on board for a 300,000 barrel-a-day cut.

But analysts said that the cuts are likely to cause other producers, especially US shale drillers, to increase output.