LONDON: Brent crude oil steadied above $78 a barrel on Thursday as reports that oil producers would agree to cut output next week offset weak economic data from China and Europe.
Ministers from the Organization of the Petroleum Exporting Countries will meet in Vienna on Nov. 27 to decide how to respond to a collapse in oil prices that have fallen more than 30 percent in five months.
The chances of an OPEC agreement to cut production aimed at bolstering the market have risen in recent days, analysts say, citing meetings between the top members of the cartel.
Saudi Arabia's King Abdullah said on Twitter on Thursday he had an "important phone conversation" with Iranian President Hassan Rouhani, but gave no details.
Brent was up 25 cents at $78.35 a barrel by 1315 GMT after closing 37 cents down in the previous session. U.S. crude was down 15 cents at $74.43 a barrel.
Austrian consultancy JBC Energy said on Thursday they expected OPEC to agree to reduce their collective crude oil production by at least 1 million bpd in an attempt to clear some of the heavy overhang of excess supply.
"If anything, the cut could be bigger," JBC Energy said in a note to clients.
Oil prices have come under intense pressure over the last few months as North American shale oil production of high quality, light oil has overwhelmed demand at a time of lacklustre economic growth in many parts of the world.
A survey on Thursday showed euro zone business growth weaker than expected by any forecasters this month and new orders down the first time in more than a year. A survey of China's manufacturing also came in weaker than expected.
"We've had disappointing data from China and Europe, and U.S. crude inventories are high, so there's plenty of supply, but tepid demand," said Michael Hewson, chief market analyst at CMC Markets.
Investors also awaited economic data from the United States on Thursday, including figures on U.S. manufacturing and home sales.
U.S. crude stockpiles unexpectedly rose by 2.6 million barrels last week, supported by an increase in oil imports, data from the U.S. Department of Energy's Energy Information Administration showed on Wednesday.
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