LONDON, Nov 20: Oil prices clawed back more ground on Tuesday, pulling away from two-and-a-half-year lows plumbed in the previous session, as Russia signalled that it was still interested in helping Opec stabilise the oil market.

A barrel of Brent North Sea crude for January delivery rose three cents in early deals to $18.04. Overnight, the December light sweet crude contract closed in New York at $18.43 a barrel, up six cents.

Crude prices fell well below $17 a barrel on Monday to 16.65 dollars, as a simmering row over output between Russia and the Organisation of Petroleum Exporting Countries (Opec) showed no signs of abating.

But speculative buying then emerged to send prices rocketing 1.50 dollars in rapid time. Dealers were particularly concerned at getting caught out should feuding oil exporters suddenly reach a deal on limiting output to rescue prices.

Opec insists on Russia and other rivals outside of the 11-nation cartel joining in with sweeping production cutbacks to trim down supply in line with weakening demand.

Moscow, eager for market share and struggling to control the diverse interests of its powerful private oil magnates, has thus far offered only token cutbacks.

But on Tuesday, a top government official reminded the market that Moscow too is concerned at falling oil prices and still has an interest in working out some accommodation with Opec.

The situation on the oil market is a continuing worry for the Russian government, said Deputy Prime Minister Viktor Khristenko, adding that supplementary measures will be decided.

Analysts said that the market could expect further rounds of brinkmanship before any agreement was reached. Many feel that Russia can live with lower oil prices than Opec kingpin Saudi Arabia.

The balance of power may be moving in Opec’s favour, but oil prices will probably have to sink further to gain a consensus within Russia for significant output cuts, said Lawrence Eagles, an analyst with the GNI brokerage in London.

The feeling remains that prices might have to dip further to force Russia into an agreement, but confidence remains that an agreement will eventually be reached, he said.

Therefore, there is fear that selling the market at these levels could leave traders susceptible to a sharp short-covering rally if some positive news emerges.

Opec’s own basket price fell to $15.85 a barrel on Monday, from $16.08, according to the cartel’s OPECNA news agency.

NEW YORK: US crude oil prices briefly sank to a 29-month low on Monday after Russia, the world’s second-biggest oil exporter, hinted it would not offer Opec any more ground in a row over oil production cuts.