NEW YORK-Oil reversed course and rose as much as 3 percent on November 29, after industry sources said Russian Federation had accepted the need to cut production, together with OPEC ahead of its meeting next week.
A rise in USA crude supply, alongside a refusal by Saudi Arabia to reduce its output, sent Brent crude, the global index, to another 2018 low below $58 a barrel.
OPEC and ten non-OPEC allies will hold a meeting on December 6 and 7 to discuss output policy for 2019.
Then came out a report by Reuters that Russian Federation has started to concede that it needs to join a new Saudi-led oil production cut, but is still bargaining with its key OPEC partner over how much, how fast, and for how long it would potentially reduce its oil output.
International Brent crude oil futures were at $59.68 per barrel at 0742 GMT, up 17 cents, or 0.3 percent, from their last close.
However the market was kept guessing by separate comments from Russian President Vladimir Putin who said that crude around $60 a barrel was "absolutely fine".
The kingdom can ill-afford another slump in oil revenues so soon after the last one, which suggests it will have to cut production, while trying to cajole other OPEC and non-OPEC countries to share the burden.
European oil benchmark Brent stood at just under $60 on Wednesday, while its U.S. counterpart WTI hovered just above $51.More news: New Tariffs Could Hit Laptops, iPhones, Trump Says
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Surging oil production in the United States, Russia and by members of the Middle East-dominated Organization of the Petroleum Exporting Countries has helped fill global inventories and create a glut in some markets.
USA crude stockpiles rose last week, the American Petroleum Institute (API) industry group said on Tuesday. Libya's current oil production is 1.266 million barrels a day, according to Bloomberg calculations based on data from people with knowledge of the situation.
Oil inventories are rising fast in the United States, where commercial crude stocks C-STK-T-EIA rose by 3.6 million barrels in the week to November 23 to 450.49 million barrels, according to the Energy Information Administration (EIA).
The price of a barrel of WTI crude oil fell below $ 50, falling to the lowest level since September 2017.
In public and private, the president has told the Saudis he wants cheaper crude, even disclosing that he berated MBS in a phone call in October when worldwide benchmark Brent surged above $80.
But oil trade, vital for Russian economy, is conducted in United States dollars, a "monopoly" Russia's President Vladimir Putin wants to end.
Also, increased cautiousness ahead of Friday's Trump-Xi meeting on trade keeps the black gold on the defensive.