LONDON: Global oil prices rallied Friday on fresh hopes that the OPEC cartel will overcome internal resistance to trim output, while upbeat US economic data also provided support, analysts said.
Nearing midday, Brent North Sea crude for delivery in January jumped $1.27 to $80.60 a barrel.
US benchmark West Texas Intermediate for January advanced 93 cents to $76.78 per barrel.
"Brent ... rose to $80 a barrel on Friday on speculation that OPEC could agree to output cuts at its meeting next week, with strong US economic data also bolstering oil prices," said ETX Capital analyst David Papier.
Prices recovered slightly after three days of losses owing to "changing expectations" on the outcome of an OPEC production meeting on November 27, added analysts at Singapore's United Overseas Bank (UOB).
"Investors are now speculating that OPEC will be able to agree to a small cut or a stronger commitment to rein in excess oil production and keep to its 30-million barrels per day quota," UOB said in a commentary.
Despite a drop of more than 25 percent in prices since June, the Organization of the Petroleum Exporting Countries (OPEC) has been divided on whether to reduce output and prevent further falls.
Cartel kingpin Saudi Arabia has so far resisted calls for a cut, in contrast to Ecuador and Venezuela.
Venezuela is ready to cut its own oil production as a way to boost falling prices if OPEC agrees to curb output, Foreign Minister Rafael Ramirez said Thursday.
Ramirez, who served as oil minister for 12 years until September and as longtime president of the state oil firm PDVSA, said the fair price for a barrel of oil is $100.
He said his country would make the proposal for cuts when OPEC holds talks in Vienna next week.
But Gulf members of OPEC, led by Riyadh, are poised to reject production cuts unless they are guaranteed market share in a highly competitive market, according to analysts.
The kingdom, which is the world's top producer, earlier this month slashed prices on exports in order to maintain market share.
Crude futures had risen on Thursday following strong economic reports from the United States -- the world's biggest oil consumer -- which offset disappointing data from China and the eurozone.
A regional manufacturing index from the Federal Reserve Bank of Philadelphia surged unexpectedly, while the Conference Board's Leading Economic Index also improved.
US existing-home sales gained in October for the second straight month.
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