Oil gains ground before US inventory data

Brent widened its gains in American trade on Tuesday on track for the first profit in three days as profit-taking off five-week highs subsidized amid output cuts from OPEC and Russia, while gains remain limited due to expectations of slower global demand. 

Ad of 13:35 GMT, US crude rose to $51.20 a barrel, with a session-high at $51.39, and a low at $50.62. 

Brent rose to $59.80 a barrel, with an intraday high at $60.03, and a low at $59.10. 

US crude fell 1.8% yesterday, the second loss in a row on profit-taking away from five-week highs at $53.29. 

Brent lost 2.1%, the second loss in a row after marking December 7 highs on Friday at $62.46. 

Oil prices are currently boosted by production cuts led by OPEC and Russia according to their December deal to reduce supplies by 1.2 million bpd. 

Morgan Stanley's analysts believe OPEC's cuts and slower US production will boost prices from current levels. 

However, weak global economic estimates are weighing on demand prospects and oil prices in turn. 

Otherwise, the American Petroleum Institute is releasing initial US inventory data today, expected to show the third weekly drawdown in a row.