Oil held above 49 US dollars as investors looked for signs of the oil supply-cut deal. The fall on Monday showed they were concerned that major oil exporters' output cut deal may not be effective enough.

Officials from Organizations of the Petroleum Exporting Countries (OPEC) and non-OPEC countries are meeting in Abu Dhabi on Monday and Tuesday to discuss ways to boost compliance with an output cut deal.

Major oil producers have agreed to reduce supply by 1.8 million barrels a day through next March in order to ease a global glut that has lingered for about 3 years.

US crude fell 0.48% to 49.34 US dollars per barrel and Brent was last at 52.27 US dollars, down 0.29% on the day.

"The petroleum markets are tipping toward the lower end of their recent trading range as oil producers meeting in Abu Dhabi have been slow to assure the market that compliance with this year’s production cuts will be improved, although we continue to note that adherence to the limits has actually been quite strong by historical standards," Tim Evans, Citi Futures' energy futures specialist, said in a note to Reuters.

(Source: Agencies)