“OPEC agreed to cut output”

Oil prices on Tuesday fell for the first session since OPEC agreed to cut output last week after data showed crude production rose in most major export regions and on growing skepticism that the cartel would be able to reduce production. After rising over 15 percent over the four sessions since the Nov. 30 OPEC meeting, Brent futures were down $1.25, or 2.3 percent, to $53.69 a barrel at 10:13 a.m. EST (1513 GMT). U.S. crude fell $1.36, or 2.6 percent, to $50.43 a barrel. The Brent front-month has outperformed the U.S. contract since the OPEC meeting, with its premium over WTI reaching $2.29 a barrel earlier on Tuesday, its highest since August. Analysts said the boon from last week’s Organization of the Petroleum Exporting Countries decision has faded as they now look to factors that may undermine the cartel’s promise such as record production, Russia’s plans and the reaction of U.S. shale producers”.

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