Oil held gains near the highest level this year after OPEC and its partners committed to continue production cuts until at least June, when they will meet to discuss an extension.
Futures in New York were little changed after advancing 1 percent on Monday. A committee of the group known as OPEC+ agreed to go beyond their pledged supply curbs in the coming months at a meeting in Baku, Azerbaijan. Still, delaying a decision on prolonging the cuts beyond June was seen as a sign of strain between the coalition's two biggest producers, Saudi Arabia and Russia.
Oil has rallied 30 percent this year as the Organization of Petroleum Exporting Countries and allies reduced production to avert a global glut on the back of record-high U.S. output. Meanwhile, American sanctions continue to squeeze supplies from Iran and Venezuela. Yet Saudi Energy Minister Khalid Al-Falihsays the group's task of rebalancing the oil market has a long way to go.
West Texas Intermediate for April delivery traded at $59.13 a barrel on the New York Mercantile Exchange, up 4 cents, at 9:39 a.m. in Singapore. The contract rose 57 cents to $59.09 on Monday, the highest close since Nov. 12.
Brent for May settlement rose 12 cents to $67.66 on the London-based ICE Futures Europe exchange. The contract added 38 cents to $67.54 on Monday. The global benchmark crude settled at an $8.25 premium to WTI for the same month.
Source : Bloomberg