Oil prices edged higher on Tuesday, as market players looked ahead to the outcome of a meeting of officials from some OPEC and non-member nations in Abu Dhabi for fresh details on how the group can increase compliance with production cuts that began at the start of the year.
According to recent calculations, compliance fell to 86% in July, the lowest level since January.
OPEC and some non-OPEC producers, including Russia, have agreed since the start of the year to slash 1.8 million barrels per day in supply until March 2018.
So far, the deal has had little impact on global inventory levels due to rising supply from producers not participating in the accord, such as Libya and Nigeria, as well as a relentless increase in U.S. shale output.
The U.S. West Texas Intermediate crude September contract was at $49.53 a barrel by 3:35AM ET (0735GMT), up 14 cents, or around 0.3%.
Elsewhere, Brent oil for October delivery on the ICE Futures Exchange in London tacked on 11 cents, or 0.2%, to $52.48 a barrel.
Source: Bloomberg
Junior Trader Stefan Panteleev
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