Oil fell back from one-year highs yesterday on fears that a production cut by the world’s largest exporters might not be enough to erode a two-year old global surplus of unwanted crude oil.

Cautious oil market bulls are stirring, sensing higher prices for future months after a first whisper that the glut may be set to slowly shrink.

Oil fell for a third day yesterday, extending its drop from the lowest close since 2009, as record supplies from Iraq and Russia bolstered speculation a global glut that drove crude into a bear market will persist.