Investing.com - Oil prices were higher during European hours on Tuesday, after plunging 4% to one-month lows in the prior session amid mounting skepticism over the implementation of a planned deal by OPEC to limit production.
Brent oil for January delivery on the ICE Futures Exchange in London tacked on 43 cents, or 0.88%, to $49.04 a barrel by 5:05AM ET (09:05GMT), after losing $2.07, or 4.08%, on Monday.
London-traded Brent prices slumped to $48.61 during the previous session, a level not seen since September 29, after a weekend meeting among global oil producers failed to cement an agreement to cut production, following objections from Iran which has been reluctant to even freeze its output.
OPEC reached an agreement to cap output to a range of 32.5 million to 33.0 million barrels per day in talks held in Algeria in late September. However, the 14-member oil group said it won’t finalize details on individual output quotas until its next official meeting in Vienna on November 30.
The possibility that producers could walk away empty-handed from the November meeting looms large after Iraq, Iran, Nigeria and Libya all signaled they might not take part in the proposed production cut deal. Russia’s unclear stance is also fueling uncertainty.
Elsewhere, crude oil for December delivery on the New York Mercantile Exchange inched up 10 cents, or 0.21%, to $46.96 a barrel. The contract tumbled $1.84, or 3.78%, in the prior session.
New York-traded oil slumped to $46.63 on Monday, the lowest level since September 29.
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 1.0 million barrels.