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Brent crude was up 18 cents at $56.19 a barrel as of 1155 GMT
(0655 EST). U.S. West Texas Intermediate (WTI) crude was up 20
cents at $53.40. Both benchmarks have hovered in negative and
positive territory since the start of the day's Asian trading.
Oil prices have been entrenched in a $3 band since February,
failing to take off after OPEC implemented, to a surprisingly
high degree, the first production cut in eight years.
Capping any upsurge has been an increase in U.S. shale oil
drilling after WTI rose firmly above $50 a barrel in December
following OPEC's sealing of the deal, which also included
several non-OPEC producers such as Russia.
"Market-wise, we have seen open interest on Brent fall to a
six-week low as non-performing or even loss-making longs have
begun to reduce exposure," said Ole Hansen, Saxo Bank's head of
commodity strategy.
Fund managers doubled their net long positions in Brent, WTI and
options to 951 million barrels between the start of November and
Feb. 21, betting OPEC's high compliance with the cut agreement
would push up prices.
But with Russia's lackluster participation in the cuts, rising
shale output and signs that OPEC countries increased their crude
exports in February after a January reduction, that bullish
sentiment has wavered.
Oil company executives, energy ministers, including from Saudi
Arabia and Russia, and other top officials such as the head of
OPEC are meeting in Houston this week for the CERAWeek energy
conference. Observers are keen for any comments that may
indicate whether OPEC would extend its output reduction.
Russia and Iraq said it was too early to discuss that issue, but
OPEC's secretary-general as well as Saudi officials are expected
to speak later on Tuesday. Russia also promised to implement its
300,000-barrels-per-day share of production cuts by the end of
April.
Brokerage Marex Spectron, however, said it expects production
and exports from Russia to rise gradually.
"If our expectations materialize, we will see a quick
deterioration of the short-term supply conditions."
Markets await U.S. oil stocks data from industry group API on
Tuesday and the Energy Information Administration on Wednesday.
U.S. oil stocks are expected to have risen for the ninth
consecutive week to a record, a Reuters poll showed.
(Additional reporting by Keith Wallis in Singapore, editing by
Louise Heavens)
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