Oil gives up some of its OPEC gains as stock markets sag

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WTI decreased 0.36 dollar to settle at 52.89 dollars a barrel, while Brent crude decreased 0.52 dollar to close at 61.56 dollars a barrel.

The market will get a peak at US oil inventories this afternoon when the American Petroleum Institute (API), an industry group, releases a report at 4:30 p.m. EST.

"Volatility will be high in the near future, but going into 2019, we are constructive on oil prices", Hootan Yazhari, head of global frontier markets equity research at Bank of America Merrill Lynch, told CNBC's Dan Murphy on Tuesday.

Oil prices fell on Monday after surging Friday on news that OPEC and non-OPEC members had reached an agreement to cut crude production by 1.2 million barrels per day from January.

"We still want Russian Federation to cut as much as possible", Saudi Energy Minister Khalid al-Falih told reporters as no decision was announced after the meeting.

Authorities in Azerbaijan agreed to cut domestic production by 20,000 bpd, despite the country not being part of OPEC.

On Wednesday, oil prices showed losses as U.S. President Donald Trump once again tried to dampen OPEC's efforts to tackle falling oil prices amid market expectations on further output cut.

Crude oil prices rose early Wednesday, buoyed by expectations of a US inventory reduction, as well as reports of production cuts by OPEC, Libya and Canada. Since October, 2018 Oil price have dropped by nearly 30%, and this decision is expected help oil producers.

Opec expects global oil demand to slow next year and sees little support from the economic backdrop. The minister said the cuts will help restore balance to the world market in 2019.

Iran, Libya and Venezuela are excluded from the reduction of oil production arrangement.

It's likely the combination of the two that prompted selling - not least concerns over growth stemming from the U.S. The slower economic growth is expected to influence the demand for oil next year and along with the growing production in the United States, the prices are estimated to decline eventually.

OPEC and its partners made a decision to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry. Since Canada's top oil-producing province announced mandatory output curbs on December 2, the spot price of Western Canada Select crude has surged more than 70 percent.