Oil prices rise from one-month lows after OPEC approves strategy

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A view of an oil refinery off the coast of Singapore, March 14, 2008. REUTERS/Vivek Prakash/File Photo

A view of an oil refinery off the coast of Singapore, March 14, 2008. REUTERS/Vivek Prakash/File Photo (Copyright Reuters 2016)

Oil prices edged higher from one-month lows in early trading in Asia on Tuesday after OPEC agreed on a long-term strategy that was seen as an indication the cartel was reaching a consensus on managing production.

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But the gains were limited as the market was weighed down by further indications of record output from the group, a sign the glut that has kept a lid on prices is not draining away as fast as the oil bulls would like.

U.S. West Texas Intermediate (WTI) futures were up 9 cents at $46.95 a barrel at 0008 GMT. On Monday they plunged nearly 4 percent to $46.86 a barrel.

Brent for January deliver, the new front-month contract, was up 24 cents at $48.85. The previous front-month contract, which expired on Monday, fell nearly 3 percent in the previous session.

The Organization of the Petroleum Exporting Countries (OPEC) approved a document on Monday outlining its long-term strategy, a sign its members are achieving consensus on managing production.

But the oil grouping had setbacks earlier, raising questions over their ability to control prices that have knocked their economies hard.

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Representatives met on Friday in Vienna, and then again on Saturday with their counterparts from non-member producers. They did not reach any specific terms, and sources said Iran has been reluctant to even freeze output.

OPEC's oil output likely hit a record high in October, rising to 33.82 million barrels per day as Nigeria and Libya partially resumed output after disruptions and Iraq raised overseas sales, according to a Reuters survey.

(Reporting by Aaron Sheldrick; Editing by Michael Perry)