Major oil companies, such as Exxonmobil and Saudi Aramco, have slashed investments on new projects.
Prices rally as top producers say they would turn taps lower, while there were also hopes for a pick-up in demand as economies slowly reopen amid Covid-19 pandemic.
Prices recently crashed as the coronavirus pandemic saps global demand, with the situation compounded by a supply glut resulting from a price war between Opec cartel kingpin Saudi Arabia and non-Opec rival Russia.
Celebrations for oil production cuts may have come too soon and will mainly benefit a few rich countries and shareholders.
The morning after the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia agreed to reduce output by 9.7 million barrels per day in May and June.
OPEC, Russia and other oil producing nations agree to cut output by a record amount, representing around 10 percent of global supply, to support oil prices amid coronavirus pandemic.
Thursday's Opec videoconference was part of a series of talks on stabilising the market, where oil prices have more than halved since the start of the year amid a pricing war between Saudi Arabia and Russia.
Kirill Dmitriev, one of Russia's top oil negotiators who also heads the sovereign wealth fund, says a deal is imminent, a month after oil prices tumbled due to the coronavirus pandemic and a price war between Russia and Saudi Arabia.
Prices may decline more gradually after Saudi Arabia sent a signal that a production cut deal may be ahead, and the US has said it will put pressure on Saudi Arabia and its allies for such a deal.
Oil prices have dropped by about two-thirds this year as the pandemic crushes demand and as major producers Russia and Saudi Arabia boost output in a war over market share.
Moscow says it's open to renewing cooperation with OPEC after oil giants and non-OPEC members failed to agree on production cuts leading to Saudi announcement it would increase oil output.
Prices are falling as Saudi Arabia, Russia and other oil-producing countries argue how much to cut production in order to prop up prices.
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