"Crude futures are roughly unchanged from just prior to the OPEC agreement as the market is apparently expressing concerns over an indicated slow start to Russia's output reductions next month", Jim Ritterbusch, president of Ritterbusch and Associates in Chicago, said in a report.
Earlier, oil settled higher on renewed optimism that announced production cuts from the OPEC+ coalition will re-balance global markets, while Libya's biggest field remained shut, taking supply off line. Non-OPEC countries have agreed to reduce oil production by 400,000 barrels a day.
OPEC members and 10 other oil producing nations, including Russian Federation, on Friday agreed to cut output by 1.2 million barrels a day from January in a bid to reverse recent falls in prices.
Brent crude rose $1.61, or 2.7%, to $61.67 a barrel. "On top of this, Saudi Arabia also needs higher oil revenues to fund domestic Saudi spending".
The OPEC+ deal will prevent building oversupply in the global market during the first half of 2019, Morgan Stanley said, adding Brent crude price could reach $67 per barrel at the end of June 2019.
The move to cut 1.2 million barrels per day from the market was not easy, Suhail Mohamed Al Mazrouei, UAE minister of energy and industry and president of the OPEC conference, has revealed in a television interview with Bloomberg.
The oil price has fallen by a third since the start of October, when it hit a four-year high above $87.
Iran, Libya and Venezuela are excluded from the reduction of oil production arrangement. Iran has been compromised as well as Libya and Venezuela, considering US sanctions.
According to the International Energy Agency (IEA), the demand for crude oil produced by OPEC countries at the world market is now at 31.3 million barrels. 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. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.
The oil cut agreement is expected to lower the glut of supply in the global oil market and bring crude prices up, which have fallen by more than 30 percent since October.
Oil gave up the day's gains heading into the settlement on Wednesday, after earlier drawing support from a report showing a drop in USA crude inventories, a cut in Libyan exports and an OPEC-led deal to trim output.