Global crude oil indices recovered Tuesday from the previous session's lows as U.S. Secretary of State John Kerry brushed off allegations of a price war.
West Texas Intermediate and Brent, the U.S. and global crude oil indices, respectively, recovered from Monday's historic lows to move into positive territory for the first time in days.
WTI for January delivery showed modest gains Tuesday to trade up 24 cents to $63.31 per barrel. Brent moved in parallel, gaining 19 cents to fetch $66.39 for the January contract.
Crude oil prices have been on a steady decline, shedding more than 30 percent of their value since June. Prices plummeted even further when members of the Organization of Petroleum Exporting Countries in late November opted to keep production static at 30 million barrels per day despite the bear market for crude oil.
OPEC members are cutting prices for their crude oil blends to shore up market shares at a time when the United States, a leading economic power, is producing more of its own oil. OPEC's decision was viewed by some analysts as a shot across the bow of the U.S. shale industry, where lower crude oil prices make it less profitable to drill.
Speaking at a conference for the Middle East at the U.S. Chamber of Commerce, Kerry downplayed the disparity in oil markets.
"We may not be as dependent on Middle East petroleum now as we used to be, but I've got news for you: The energy market is still global," he said.
OPEC leaders at their November meeting said they were letting the markets determine the price for oil. A decision to cut production would have raised global oil prices, making shale more profitable, while increasing output would have damaged prospects for oil-producing economies across the board.
