Boom times may not be just around the corner for Houston's oil and gas companies, but 2017 is looking more like a year of recovery.

Oil prices reached 18-month highs on Monday in the wake of OPEC, Russia and other nations confirming their plans to scale back production. Optimism has been rising along with crude prices since Nov. 30, when the Organization of the Petroleum Exporting Countries reached the historic deal to reduce production by 1.2 million barrels a day. That momentum, led by Saudi Arabia, continued over the weekend after Russia and 10 other non-OPEC nations agreed to cut about 550,000 barrels a day.

The U.S. benchmark for oil settled Monday at $52.83 a barrel, up $1.33 - the highest settlement since early July 2015 and double this year's low of $26.21 back in February.

The magnitude of the production cuts are so large that $60 oil should be a reality soon, even if some countries cheat on their promised production quotas, said Andy Lipow, an analyst with the Houston research firm Lipow Oil Associates. Further, oil companies are in a much better position to take advantage of the rising prices, regardless of whether they reach $100 per barrel, he added. "The bust forced oil companies to learn how to profit at much lower oil prices," Lipow said. "The efficiencies and technological improvements gained since could make "$60 the new $90."

Optimism is growing in Houston and actual economic improvements should follow, said David Pursell, a managing director and research manager at Houston energy investment bank Tudor, Pickering, Holt & Co. The Lone Star State shed over 100,000 oil and gas jobs during the bust, considered the worst in 30 years.

"Things aren't as dire as they once seemed," Pursell said. "We think 2017 will be a year of patching holes, hiring new people and fixing old equipment."

The biggest news wasn't Russia agreeing to cut 300,000 barrels daily as anticipated, but Saudi Arabia suggesting it will depress its production even more than planned.

"We're going to cut and cut substantially to be below the level that we have committed to," Saudi Energy Minister Khalid Al-Falih said Saturday.

Al-Falih's comments translate to: "We're going to put an exclamation point on this bad boy and cut more," Pursell said. "That means the compliance risk is certainly fading."

Saudi Arabia should see the deal through even if other countries cheat a bit. Pursell said he believes oil prices could grow to $75 a barrel by the end of next year.

Several steps remain, though, and it won't be until February when production data confirms whether OPEC, Russia and others are seeing their promises through.

Any energy sector gains will see fits and starts and global oil demand may grow slower than anticipated. The U.S. could prove its own worst enemy if producers attempt to recovery too quickly and boost output too high again.

The signs of recovery already are seeping in though, even if spending levels aren't expected to grow substantially for some time. Companies are hiring again in the busy West Texas Permian Basin, and the pace of layoffs and bankruptcies slowed dramatically.

The U.S. last week saw its biggest weekly jump in drilling activity in more than two years with 27 rigs added to oil and gas fields, including 17 just in Texas. North of the border, Canada tacked on 30 rigs, many in the costly oil sands.

As for OPEC, the cartel may not want oil prices to rise too high. It is trying to balance oil prices closer to $60 - healthy enough for some recovery, but not too healthy to the point that U.S. shale producers start churning out far more oil than demand can satiate.

Nigerian petroleum minister Emmanuel Kachikwu on Monday told Bloomberg that $60 a barrel oil is "ideal" because it shouldn't trigger a full-scale U.S. shale recovery.