Oil up

London

Oil rose on Tuesday after exchange data showed hedge funds placing record bets on North Sea and U.S. crude as OPEC production cuts tightened supply.

Benchmark Brent futures were up 50 cents at $56.58 a barrel. U.S. light crude was up 50 cents at $53.90, having risen by about 0.5 percent in a shortened session on Monday because of a U.S. national holiday.

Money managers now hold the highest volume of net long Brent futures and options on record, InterContinental Exchange data showed on Monday, betting on higher prices to come as OPEC and other key exporters reduce production.  Members of the Organization of the Petroleum Exporting Countries and other producers outside the group agreed in November to cut output by about 1.8 million barrels per day (bpd) in an effort to drain a global glut that has depressed prices for more than two years.