Oil prices rise from one-month lows after OPEC approves strategy
Oil prices edged higher from one-month lows in early trading in Asia on Tuesday after OPEC agreed on a long-term strategy that was seen as an indication the cartel was reaching a consensus on managing production, Reuters reported.
But the gains were limited as the market was weighed down by further indications of record output from the group, a sign the glut that has kept a lid on prices is not draining away as fast as the oil bulls would like.
U.S. West Texas Intermediate (WTI) futures CLc1 were up 9 cents at $46.95 a barrel at 0008 GMT. On Monday they plunged nearly 4 percent to $46.86 a barrel.
Brent LCOc1 for January deliver, the new front-month contract, was up 24 cents at $48.85. The previous front-month contract, which expired on Monday, fell nearly 3 percent in the previous session.
The Organization of the Petroleum Exporting Countries (OPEC) approved a document on Monday outlining its long-term strategy, a sign its members are achieving consensus on managing production.
But the oil grouping had setbacks earlier, raising questions over their ability to control prices that have knocked their economies hard.
Representatives met on Friday in Vienna, and then again on Saturday with their counterparts from non-member producers. They did not reach any specific terms, and sources said Iran has been reluctant to even freeze output.
OPEC's oil output likely hit a record high in October, rising to 33.82 million barrels per day as Nigeria and Libya partially resumed output after disruptions and Iraq raised overseas sales, according to a Reuters survey.