Oil prices rose on Friday, nearing their highest levels in more than two years, with buyers attracted by expectations of an extension to a global pact to cut output that has reduced oversupply.

Global benchmark Brent futures traded up 45 cents at $61.07 a barrel at 0914 GMT, approaching levels around $61.70 a barrel last seen in July 2015. Brent has risen around 38 per cent since its low in 2017 reached in June.

US West Texas Intermediate (WTI) crude traded at $54.92 a barrel, up 38 cents. WTI is around 31 per cent above its 2017 low hit June.

This week's US Energy Information Agency (EIA) report on crude inventories and exports showed a large draw in US stocks, showing that market is rebalancing.

“Wednesday's EIA report was bullish so the longs took profit then but now the uptrend is reasserting itself. Roll-over of the OPEC/non-OPEC deal looks certain and is also supportive,” said Tamas Varga, senior analyst at London brokerage PVM Oil Associates.

The Organization of the Petroleum Exporting Countries meets at the end of November to discuss further action after it agreed nearly a year ago with Russia and other producers to hold back 1.8 million barrels per day (bpd) of oil supply.

Russia said on Thursday the deal, which is due to expire in March, could be extended if necessary but that a decision was not imminent.

While supplies are being withheld, demand is also rising, especially in China, whose roughly 9 million bpd of imports have surpassed those of the United States to top the world's crude importer list.

“China's oil demand growth appears to be accelerating," investment bank Jefferies said.

Physical oil prices are also rising. Saudi Aramco, the UAE's ADNOC and Qatar Petroleum have all raised their crude prices for Asian buyers, with Aramco's December premium over the average of the Oman and Dubai benchmarks now at the highest in three years.

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