Oil prices traded higher on Tuesday, reversing some of its losses from earlier in the session when both benchmarks fell more than 1.5% on fears of market oversupply. Saudi Arabia is said to have increased its crude output to a record level of over 11 million barrels per day in November, reigniting concerns of unstable market conditions due to an increased global oil production.
However, the prices rebound as market watchers remained hopeful that the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers led by Russia will agree to implement an output cut during their meeting set for next month. Meanwhile, investment incentives were also heightened ahead of the G20 meeting due to take place next week in Argentina.
West Texas Intermediate for January delivery gained 0.46%, changing hands for $51.88 per barrel at 4:37 pm GMT while the international benchmark Brent for settlements in the same month added 0.61% to trade for $60.84 per barrel at 3:38 pm GMT.