Oil prices inched up on Tuesday amid supply cuts by producer club OPEC and Russia, although the darkening economic outlook capped gains.

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US West Texas Intermediate (WTI) crude futures were at $50.78 per barrel at 0041 GMT, up 27 cents, or 0.5 percent, from their last settlement.

International Brent crude oil futures had yet to trade.

“The impact of OPEC+ cuts, Iran sanctions and lower month-on-month growth in US production should help to support oil prices from current levels,” US bank J.P. Morgan said in a note.

The Middle East dominated producer club of the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut.

Meanwhile, the United States last November re-imposed sanctions against Iran’s oil exports. Although Washington granted sanctions waivers to Iran’s biggest oil customers, mostly in Asia, the Middle Eastern country’s exports have plummeted since.

However, Tuesday’s slight oil price increases came after crude futures fell by more than 2 percent the previous session, dragged down by weak Chinese trade data which pointed to a global economic slowdown.

“Given the heightened macro risk anxiety, any support from supply-side correction could be limited,” J.P. Morgan said.

First Published:Jan 15, 2019 6:34 AM IST