Oil prices rise from one-month lows after OPEC approves strategy

An oil well pump jack is seen at an oil field supply yard near Denver, Colorado, U.S., February 2, 2015.    REUTERS/Rick Wilking/File PhotoAn oil well pump jack is seen at an oil field supply yard near Denver, Colorado, U.S., February 2, 2015. REUTERS/Rick Wilking/File Photo

Oil prices rose from one-month lows in Asian trading on Tuesday after OPEC agreed on a long-term strategy that was seen as an indication the cartel was reaching a consensus on managing production.

But further gains are likely to be limited as the market was weighed down by further indications of record output from the group, a sign the glut that has kept a lid on prices is not draining away as fast as the oil bulls would like. U.S. West Texas Intermediate (WTI) futures were up 23 cents at $47.09 a barrel at 0725 GMT. They plunged nearly 4 percent to $46.86 a barrel in the previous session.

Brent for January delivery, the new front-month contract, was up 45 cents at $49.06 a barrel. The previous front-month contract fell nearly 3 percent before expiry on Monday. Oil prices had risen as much as 13 percent since the Organization of the Petroleum Exporting Countries (OPEC) announced on Sept. 27 a production cut to support prices after the slump that began in mid-2014. The cartel said members’ cuts will be finalised at a meeting later this month.

Still, OPEC approved a document on Monday outlining its long-term strategy that would mean returning to its role of managing the market and being more proactive in anticipating market changes.That was a more bullish signal after OPEC representatives met on Friday in Vienna, and then again on Saturday with their counterparts from non-member producers, but failed to reach any specific terms, and sources said Iran has been reluctant to even freeze output.

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