Global oil prices climbed to more than US$50 per barrel for the first time since July, as OPEC says the market will be "more balanced" in 2016.

Analysts say the market has also been buoyed by a weaker U.S. dollar and expectations that a rise in demand would ease a global supply glut.

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There are other geopolitical developments that have also contributed to the price spike, with market participants rebuilding an oil-price risk premium attached to potential production shortages in the Middle East.

The fighting in Syria and, especially, Russia's recent intervention there, in addition to attacks by Islamic State group extremists on production facilities in Iraq, have raised the risk of production reductions occurring.

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Since 2014, oil prices have declined significantly, causing serious difficulties for OPEC's individual commodity exporters, whose economies are burdened by lack of oil revenue.

Despitecalls by somemembers to reduce production to shore up prices, the bloc has decided not to cut the oil output and stick with its decision to maintain the price of oil below US$50 for now.

In its October report, OPEC stated that fundamental factors of supply and demand, which have weighed on the market for more than a year, have persisted, but are starting to show signs of alleviation.

According to some analysts, Saudi Arabia and the United States – which is not an OPEC member – are responsible for the drop, with U.S. shale flooding the market while the Saudis and their allies within OPEC have maintained their current rate of crude production.