Investing.com - Oil prices rose to their highest level in over three weeks on Tuesday, as investors continued to bet that the Organization of the Petroleum Exporting Countries will reach an agreement to rein in output this month.
U.S. crude oil hit highs of $49.20 a barrel on Tuesday, the highest level since October 28 and was at $49.01 a barrel by 1007 GMT, up 78 cents or 1.6%.
Global benchmark Brent futures were at $49.72 a barrel, up 82 cents or 1.7%.
Oil prices jumped sharply on Monday after reports that energy ministers from Iraq and Iran were backing a proposed OPEC output cut aimed at curbing oversupply that has pressured prices lower for more than two years.
OPEC is to meet on November 30 to decide on strategy for the first half of next year.
The producer cartel is attempting to get its 14 member states along with non-OPEC member Russia to implement coordinated production cuts to reduce a global supply glut and support falling oil prices.
But many market analysts remain skeptical on the outlook for an output cut, amid uncertainty over how any agreement would be implemented.
OPEC reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day at a meeting in September.
But production by OPEC members hit a record high in October of 33.64 million barrels per day.
Reaching an agreement on a deal to cut output has proved problematic, with some producers, most notably Iran, reluctant to curb production.
Iran has ramped up production in a bid to regain market share after international sanctions against it were lifted last January.
Analysts also warned of potential volatility in the oil market this week, with trading volumes expected to be lower ahead of the U.S. Thanksgiving holiday on Thursday.