Oil rises as Opec output cuts trim oversupply

Analysts say oil producers will have to cut production more quickly to drain global oversupply

Oil price strengthened slightly on Tuesday, supported by the Organization of the Petroleum Exporting Countries (Opec)-led effort to cut output while rising production elsewhere kept prices within the narrow ranges that have contained them so far this year.

Brent crude was 55 cents higher at $56.14 a barrel by 1220 GMT. US light crude oil was up 45 cents at $53.38.

The two benchmarks fell two per cent on Monday. They are both now in the middle of $5-per-barrel trading ranges seen since early December. “The usually fairly volatile oil price has barely budged for two months, the reason being conflicting dynamics