Oil prices rose by 2% today, extending a rally from 18-month lows hit in December with support from OPEC production cuts and steadying equity markets. 

Oil has gained nearly 12% since last Monday in its biggest week-on-week rally in two years. 

Brent crude futures rose $1.39 on the day to $58.45 a barrel this afternoon, up from December's slide below $50, which was its lowest level since July 2017. 

US crude rose $1.26 to $49.22 a barrel. 

The oil prices are drawing support from an agreed supply cut by the Organization of the Petroleum Exporting Countries, well as some non-member countries such as Russia and Oman. 

OPEC oil supply fell in December by 460,000 barrels per day (bpd), to 32.68 million bpd, a Reuters survey found last week, led by cuts from top exporter Saudi Arabia. 

The aim of the production cut is to rein in a surge in global supply, driven mostly by the US, where production grew by nearly a fifth to over 11 million bpd in 2018. 

Record high crude oil production has also pushed up US inventories, which rose by nearly 17% in 2018 to their highest in well over a year, according to weekly data by the Energy Information Administration (EIA) on Friday. 

More upbeat equity markets also offered support on the back of expectations that trade talks set for this week between the US and China will ease a trade dispute. 

The row has added to concerns about an economic downturn, which would hurt demand for oil.

Goldman Sachs said in a note it had downgraded its average Brent crude oil forecast for 2019 to $62.50 a barrel from $70 due to "the strongest macro headwinds since 2015". 

Societe Generale cut its 2019 oil price forecast for Brent by $9 to $64 a barrel and reduced its forecast for US light crude by $9 to $57 a barrel.