Investing.com - Oil prices stabilized on Tuesday following a powerful rally in the previous session that propelled prices to the highest levels since mid-2015 after major producers reached a deal to cut output in a bid to rebalance the oversupplied global market.
U.S. crude was trading at $52.77 a barrel at 09:18 GMT, down six cents or 0.09% from its last close.
Global benchmark Brent futures were at $55.74 a barrel, up eight cents or 0.11%.
Prices retreated from the highs hit on Monday as traders took profits after the rally, but the market remained supported by the deal to scale back output
The Organization of the Petroleum Exporting Countries and non-OPEC producers on Saturday reached their first deal since 2001 on coordinated production cuts.
Producers from outside OPEC agreed to cut output by 558,000 barrels per day from January 1, short of the initial target of 600,000 bpd, but still the largest ever output cut by non-OPEC nations.
Russia pledged to undertake the bulk of the cuts, reducing production by 300,000 bpd.
This was on top of a cut of 1.2 million bpd cut announced by OPEC on November 30.
The output cuts will come into effect on January 1 and the oil producers will reconvene in six months to assess the deal.
The total reduction represents almost 2% of global oil output.
Oil production has been outstripping consumption by between one to two million barrels per day since late 2014, pressuring prices lower.
But doubts have emerged over how effective the cuts will be at rebalancing the market with some analysts skeptical on the ability of major producers to adhere to output limits.
There are also concerns over how quickly other producers, particularly U.S. shale drillers, will ramp up their production in a bid to benefit from higher prices.