The West Texas Intermediate for January delivery decreased 1.61 US dollars to settle at 51 dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery fell 1.7 dollars to close at 59.97 dollars a barrel on the London ICE Futures Exchange. Crude futures pared gains as stocks fell.
Prices now hover around $60 a barrel, down from more than $85 a barrel in early October in the face of fears of weaker demand and an increase in supplies.
International Brent crude oil futures LCOc1 were at $60 per barrel at 0746 GMT, up 3 cents from their last close.
"The more OPEC+ tries to support prices by withholding oil from the market, the more they give the US shale sector an out from rationing supply growth themselves", it added. In post-settlement trade, US crude dropped to as low as $50.53 a barrel. Brent crude is down almost 30 percent from its October highs of more than $86.
The rise came after crude prices dropped by 3 per cent the session before amid ongoing weakness in global stock markets and concerns that slowing oil demand-growth could erode supply cuts announced last week by the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including Russian Federation.
Malaysia will extend its oil production cuts by another six months after the agreement between OPEC and other oil producers to reduce global supply ends this year. "We expected there will be a slowdown in demand for oil and accordingly made a decision to cut production", Mazrouei said. In post-settlement trading, Brent extended losses to a session low of $59.61. "As a result of that you could see the market getting quite scared", the strategist said.
In exports, Saudi Arabia's hit their highest in 20 months in September, according to data by the Joint Organisations Data Initiative (JODI) database, which collects self-reported oil figures from 114 countries.
The worst kept secret about the crude production cutbacks engineered by the Organization of the Petroleum Exporting Countries (OPEC) - that the US will continue to gain market share by pumping all out - was supported indirectly on Tuesday by the Energy Information Administration, which noted that the Americans are expected to end 2018 as the world's top producer.