Oil markets were rather skeptical and cautious as they watched a tropical storm over the Mexican Gulf. But the talks of extension by Russia and Saudi Arabia shook markets with positivity.

U.S. West Texas Intermediate (WTI) crude was trading at $50.76 per barrel at 0333 GMT, down 3 cents from its last close. 

Brent crude was down 4 cents at $56.96 a barrel. The activity was less compared to other days, as China was observing a Golden Week holiday. The investors were also preoccupied with storm brewing in the Gulf of Mexico.

King Salman of Saudi Arabia, OPEC's de-facto leader, met with Russian President Vladimir Putin in Moscow on Thursday to discuss, among other things, oil policy.

Saudi Arabia made no firm pledge to extend a deal between OPEC, Russia and other producers on cutting supplies but said it was “flexible” regarding suggestions to prolong the pact until the end of 2018.

A deal to cut around 1.8 million bpd in production has been in place since January and is due to expire at end-March 2018.