Oil prices increased on Friday as market hopes non-OPEC producers meeting over the weekend would agree to cut output to bolster OPEC's own agreement to limit production.

However, a stronger U.S. dollar and increased U.S. oil rig count offset some of the price strengths.

The dollar climbed against most major currencies on Friday, making oil more expensive to world's buyers who use other currencies.

Also on Friday, the oilfield services company Baker Hughes reported that oil rigs operating in U.S. fields rose by 21 to 498, marking the sixth straight week increase.

The West Texas Intermediate for January Delivery increased 0.66 U.S. dollars to settle at 51.50 dollars a barrel on the New York Mercantile Exchange, while Brent crude for February delivery added 0.44 dollars to close at 54.33 dollars a barrel on the London ICE Futures Exchange.