LONDON: Oil rose Tuesday after top producers Saudi Arabia and Russia agreed in principle to freeze output in a bid to stabilise an oversupplied market -- if others do the same.
In early afternoon London deals, Brent North Sea crude for delivery in April advanced 50 cents to $33.89 per barrel.
US benchmark West Texas Intermediate for March delivery added 41 cents to $29.85 a barrel from Monday's closing level.
The Saudi and Russian oil ministers, along with their Venezuelan and Qatari counterparts, "agreed to freeze the production at (the) January level provided that other major producers follow suit," said Qatar's Energy Minister Mohammed bin Saleh al-Sada on Tuesday.
"This step is meant to stabilise the market," said Sada, who is acting president of the OPEC oil cartel, describing the meeting in Doha as "successful".
Saudi Oil Minister Ali al-Naimi added: "This is the beginning of a process which we will assess in the next few months and decide whether we need other steps to stabilise and approve the market.
"We don't want significant gyrations in prices. We don't want a reduction in supply. We want to meet demand and we want a stable oil price."
However, analysts said the market response was muted because some traders had hoped for a reduction in oil output to curb the vast supply glut.
"It is a conditional agreement to freeze -- not cut -- crude production at January levels," City Index analyst Fawad Razaqzada told AFP.
"The news has actually disappointed the market slightly because some people had hoped to see a cut rather than a production freeze.
"So, in the short term, oil prices may come under some pressure. Nevertheless, it is a step in the right direction and if other major producers follow suit then at the very least it should help to prevent oil prices from suffering further big falls."
Oil prices have tumbled about 70 percent since June 2014, hit by oversupply, sluggish demand and worries about the global economic outlook.
They have also been pressured by the return of Iran to world markets after the lifting of international sanctions linked to its nuclear programme.
Other producers, both OPEC and non-OPEC members, are expected to "start intensive communications almost straight away," added Sada on Tuesday.
"This was a total surprise," said Saxo Bank analyst Christopher Dembik in reaction to the announcement.
"There were rumours for weeks -- but no one thought there would be an agreement before the next OPEC meeting in June."
He also warned that the deal did not involve all the major oil producing nations -- particularly the United States -- and described the deal as an "insufficient" measure to absorb excess supplies.
The 13-nation OPEC oil cartel, of which Saudi Arabia, Venezuela, Qatar and Iran are members, has refrained from cutting output as it looks to maintain market share in the face of competition from US shale oil producers.
Russia -- which is not an OPEC member -- has seen its recession-hit economy damaged further by the slump in oil.
Natixis analyst Abhishek Deshpande told AFP that the exact January date was vital to Tuesday's deal.
"January 11, the date prior to Iran's sanctions being lifted, is quite critical," Deshpande said.
"Indeed freezing output at those levels could help balance the markets as early as third quarter of this year.
"But this is based on an assumption of no increase in output from Iran and Iraq."
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