On Tuesday, crude grew on expectations that an OPEC-led output cut to prop up the oil market could be extended, while sturdy demand would also work to gradually erode a global fuel supply overhang.
Prices for front-month Brent crude futures hit $51.86 per barrel, growing 0.5% from their previous close.
Besides this, US West Texas Intermediate crude futures gained 0.3%, hitting $48.35 a barrel.
The Organization of the Petroleum Exporting Countries along with other producers including Russia, has promised to reduce its output by nearly 1.8 million barrels per day etween January and June, thus trying to prop up crude prices and also rein in a global supply glut, which has dogged financial markets for nearly three years.
However, the given cutback hasn’t given the desired effect because compliance by involved exporters appears to be patchy and as other crude producers, including America, have stepped p to fill the gap, resulting in crude prices diving more than 10% since the beginning of 2017.
