Investing.com - Oil prices pared back gains after hitting their highest levels since October on Tuesday, amid fresh doubts over whether the Organization of the Petroleum Exporting Countries will be able to reach an agreement to limit output.
U.S. crude oil was up just 10 cents or 0.25% at $48.37 a barrel by 0937 ET, after earlier rising as high as $49.20 a barrel, the highest level since October 28.
Global benchmark Brent was at $49.30 a barrel, still up 40 cents or 0.82%, but off highs of $49.96.
Oil prices were hit after Reuters reported that Iran, Iraq and Indonesia have doubts about the proposed output cut, aimed at curbing oversupply that has pressured prices lower for more than two years.
Iraqi Foreign Minister Ibrahim al-Jafari said Tuesday that the country should be exempted from reducing its oil output because it needs the revenue to keep up its war against ISIS.
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 have remained 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.