Oil prices surged as much as 12% on Friday after new suggestions that Opec nations were set to cut oil production.

The United Arab Emirates' energy minister said that Opec members were ready to reduce output, the Wall Street Journal reported.

Venezuela's oil minister said oil-producing nations were on a "very good path" to clinch a deal.

However, traders said sharp falls on Thursday may have triggered some bargain-hunting.

Eulogio Del Pino, the Venezuelan minister, who recently visited Russia and Saudi Arabia as part of a global tour to drum up support among both Opec and non-Opec producers, said "we're on a very, very, very good path" to reducing production.

Brent crude closed up $3.30 at $33.36 a barrel in New York after falling below $30 on Thursday.

After sinking to a 12-year low of $26.05 on Thursday, US crude settled up 12%, or $3.23, to $29.44 a barrel - its biggest one-day rise since 2009.

Many traders were sceptical about the Journal's report, pointing out that Venezuela and Russia had tried in vain earlier this week to stir Saudi Arabia and other major producers into agreeing to output cuts.

However, some believe that prices would rebound sooner or later if production tightened or demand rose.

(BBC)