Oil pared gains in post-settlement trading after API data shows big surprise build in U.S. crude stocks.
Brent crude rose 46 cents, or 0.96 percent at $49.63 a barrel, after hitting an intraday high of $51.20. The global benchmark settled more than 3 percent lower on Monday after rallying 20 percent between the beginning of the month and Aug. 19.
U.S. crude's West Texas Intermediate was last up 0.74 percent at $47.76 a barrel, after settling at $48.10 a barrel, up 69 cents, or 1.46 percent. WTI broke a seven-day winning streak in the previous session.
Oil prices had been positive after Reuters reported
OPEC's third-largest producer has been boosting output after the lifting of Western sanctions in January. Tehran refused to join a previous attempt this year by OPEC plus non-members such as Russia to stabilize production, and talks collapsed in April.
Though Iran has not yet decided whether to join a new effort, Tehran appears to be more willing to reach an understanding with other oil producers, the sources said.