Mubasher: Oil prices rose on Friday, after plunging 5% in the prior session amid indications that the supply cuts announced by the Organization of Petroleum Exporting Countries (OPEC) will be deeper than expected.

By 8:15 am GMT, global benchmark Brent futures rose 0.96% to$54.87 per barrel (pb), while US Nymex crude futures climbed 1.18% to $46.42 pb.

Brent crude is heading to fall 9.4% for the week, while Nymex is on course to fall around 9.5%.

Crude prices tumbled, along with major equity markets, as investors were concerned about the strength of the global economy heading into next year.

Moreover, worries were further raised over a potential government shutdown in the US, the world’s largest oil consumer, later on Friday.

However, OPEC plans to release details of output cut quotas for its members and allies, including Russia in a bid to buoy oil markets, Thomson Reuters reported, citing the producer group’s secretary general Mohammad Barkindo in letter.

In order to reach the proposed reduction of 1.2 million barrels per day (bpd), the effective cut for members was 3.02%, Barkindo said.

This is above the 2.5% originally discussed as OPEC looks to accommodate Libya, Iran and Venezuela, which are exempted from any required cut.

“The current oil prices will force OPEC to increase compliance with the production cut deals, supporting Brent prices,” Guotai Junan futures crude research head Wang Xiao told Reuters, adding that “the temporary recovery in prices has been driven by short- sellers buying back.”

Both contracts dropped more than 30% from their highs in October on fears that oil demand would fade because of a slowing global economy and indications of a market glut.