Crude oil prices jumped more than 2% on Monday after Saudi Arabia and Russia agreed to keep production cuts in place into 2018.
The energy ministers of both countries – the world's two leading oil producers – said that current output curbs should be extended until March 2018.
At a briefing in Beijing, Khalid al-Falih and Alexander Novak said in a joint statement: "There has been a marked reduction to the inventories, but we're not where we want to be in reaching the five-year average."
The two ministers continued: "We've come to the conclusion that the agreement needs to be extended."
Saudi Arabia, the de facto leader of oil cartel Opec would like to see oil prices closer to $60 a barrel, but high inventories and rising output from US shale oil producers have kept prices in a range below this level for much of the last year.
More recently, bearish US inventory data and reports that other Opec members were failing to comply with existing output cuts, drove crude prices below $50, with Nymex West Texas Intermediate falling to a two-month low of $47.66 last week.
Ole Hansen, head of commodity strategy at Saxo Bank, said: "It is still too early to call an end to the latest sell off but with a heavy build-up in speculative selling during the past few weeks further gains could become self-feeding as sold positions are covered."