Oil prices rebound on hopes for output cut deal

Oil prices rebounded Tuesday on fresh hopes an OPEC-led meeting this week will reach an agreement to reduce oversupply and shore up the market.

Prices have fallen sharply since expectations for a quick deal to cut output levels were dashed, but the rescheduling to Thursday of a meeting of major crude producers boosted sentiment.

US benchmark West Texas Intermediate was up 3.83 per cent to USD 27.08 a barrel in Asian morning trade.

A barrel of Brent crude, the international benchmark, was trading 2.81 percent higher at USD 33.98.

Prices fell to 18-year lows last week as the market wallowed in oversupply arising from a price war between Saudi Arabia and Russia, which have ramped up production.

"Prices recovered some of the early losses, as both Russia and Saudi Arabia suggested they would be willing to cut production but only if the rest of the world followed suit," ANZ Bank said in a note.

"The stumbling block appears to be the US, which is reluctant to join an agreement."