LONDON: Brent crude oil rose towards $80 a barrel on Friday on speculation OPEC could agree output cuts at a meeting next week, with strong U.S. economic data also bolstering prices.
Venezuela reiterated its call for production cuts, with Foreign Minister Rafael Ramirez saying it was willing to curb its own output if the Organization of the Petroleum Exporting Countries agreed to reduce production at its Nov. 27 gathering.
Libya and Ecuador have also called for OPEC to cut output.
Iran urged fellow OPEC members to shore up oil prices, which have fallen 30 percent since June as new supplies from North America have overwhelmed demand at a time of lacklustre global economic growth.
"I hear more and more sounds indicating that markets are expecting a possible cut in OPEC production, from a more balanced view earlier," said Hans van Cleef, senior energy economist at Dutch bank ABN Amro in Amsterdam.
Tamas Varga, analyst at brokerage PVM Oil Associates in London, agreed, saying markets expected some sort of OPEC deal, even though the exact outcome of the meeting was still unclear.
"The noises from OPEC in recent days are much more bullish than, say, two weeks ago," Varga said
Speculation over a possible OPEC agreement pushed Brent to a high of $80 a barrel in early trade on Friday.
Brent was up 20 cents at $79.53 a barrel by 0945 GMT after jumping $1.23 in the previous session. The benchmark could snap an eight-week slide if the gains are sustained on Friday.
US crude was up 25 cents at $76.10 a barrel after gaining $1 in the previous session.
Oil prices were supported by a raft of US economic data showing the world's largest economy and single biggest oil consumer was growing faster than many economists had expected.
Factory activity in the U.S. mid-Atlantic region expanded in November to its highest level in 21 years, while home resales rose to an annual rate of 5.26 million units, the highest since September 2013.
Investors kept a wary eye on talks in Vienna between Iran and the big world powers over Tehran's nuclear programme.
Sharp divisions remain at the talks, which could result in the tightening, or ending, of sanctions that have severely restricted the Islamic state's oil exports.
Officials have said the nuclear talks could be extended to March from Nov. 24. (Reuters)
