Investing.com – Oil prices were higher during European hours on Tuesday, following an overnight decline, as market players awaited details of a planned output cut by the Organization of the Petroleum Exporting Countries.
A drop in the away from seven-month highs also supported crude, as a lower greenback makes fuel purchases cheaper for countries using other currencies.
for November delivery on the New York Mercantile Exchange tacked on 51 cents, or 1.02%, to $ 50.45 a barrel by 4:10AM ET (08:10GMT), after falling 41 cents, or 0.81%, . The U.S. benchmark touched a four-month peak of $ 51.60 on October 10.
Elsewhere, for December delivery on the ICE Futures Exchange in London inched up 47 cents, or 0.9%, to $ 51.99 a barrel. On Monday, prices lost 43 cents, or 0.83%.
London-traded Brent prices rose to a one-year high of $ 53.73 on October 10, amid growing expectations of an output cut by major global oil producers.
The Organization of the Petroleum Exporting Countries reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day in talks held on the sidelines of an energy conference in Algeria late last month.
However, the 14-member oil group said it won’t finalize details or complete its production agreement until its next official meeting in Vienna on November 30, when an invitation to join cuts could also be extended to non-OPEC countries such as Russia.
Market analysts remained skeptical of the deal, pondering how such a plan would be implemented.
OPEC’s monthly report published last week revealed that its oil production rose in September to the highest level in eight years, despite the agreement to potentially cut output. The producer cartel pumped 33.39 million barrels per day last month, up 220,000 barrels per day from August.
Meanwhile, market players are also looking ahead to weekly data from the U.S. on stockpiles of crude and refined products.
Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (20:30GMT) later on Tuesday. Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock increase of 2.4 million barrels.
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