SINGAPORE Oct 11 Oil prices edged down early on
Tuesday but held near one-year highs touched on growing
expectations of an output cut by OPEC producers, and traders
said the price outlook remains bullish as confidence in crude
Oil prices jumped as much as 3 percent on Monday, with Brent
hitting a one-year high, after Russia said it was ready to join
the Organization of the Petroleum Exporting Countries (OPEC) in
curbing crude output.
International Brent crude oil futures were trading
at $53.04 per barrel at 0036 GMT, down 10 cents from their
previous close, not far off Monday's $53.73 a barrel high.
U.S. West Texas Intermediate (WTI) crude futures were
at $51.24 a barrel, down 11 cents from their last close, but
also close to Monday's $51.60 a barrel high.
"Oil rose to a one-year high on optimism regarding a future
agreement between OPEC and major producers to restrict output,"
said ANZ bank on Tuesday.
Carsten Fritsch of Germany's Commerzbank said that "the
expectations of an OPEC production cut surely played a role" in
the recent price rises of the futures market, where large
volumes of new long positions have been built up as the market
becomes increasingly confident about rising oil prices.
However, sounding a note of caution, Fritsch said he had
"significant doubts whether they (production cut targets) will
actually be fulfilled" as rivalry between OPEC members, who are
fighting aggressively for global markets share, could prevent an
(Reporting by Henning Gloystein; Editing by Richard Pullin)