Notably, U.S. crude is trading below $50.00 per barrel while Brent oil is hovering around $55.00 per barrel.
Besides, tight stocks position on fall in supplies from growing regions supported the upmove. West Texas Intermediate, the USA benchmark for the price of oil, took an erratic turn in early trading to lose 0.12 percent from the previous close to $48.01 per barrel.
If these weren't enough, the U.S. Energy Information Administration lowered its oil production forecast for this year and the next by 1% and 0.7%, respectively.
This is published unedited from the PTI feed.
The International Energy Agency (IEA) has raised its forecast for world oil demand in 2017 by 100,000 barrels per day in comparison with the August forecast to 97.7 million barrels per day, according to a media report.
Even When OPEC Wins, It Loses
Nigeria has agreed to join the OPEC+ deal once its daily crude production reaches 1.8 mln barrels, Kuwaiti Oil Minister Essam al-Marzouk said Wednesday.
In August, OPEC's total crude oil production eased by 79,000 b/d, to average nearly 32.8 million b/d. Opec crude output fell in August for the first time in five months, after renewed turmoil in Libya disrupted supply and others pumped less, IEA data showed.
The IEA said a global oil surplus was beginning to shrink due to stronger-than-expected European and United States demand growth, as well as production declines in OPEC and non-OPEC countries.
US gasoline stocks slumped 8.4 million barrels, the largest weekly decline since the data began in 1990.
Mohammed Barkindo, secretary general of the Organisation of Petroleum Exporting Countries (OPEC), says demand for oil will increase by 2 million barrels per day by the end of 2017. The U.S. existing oversupply of crude is expected to be enough to ease shortages.
Gasoline inventories, one of the products that crude is refined into, fell by roughly 8.4 million barrels, beating expectations of a draw of 2 million barrels while distillate stockpiles fell by 3.2 million barrels, topping expectations of a decline of 1.5 million barrels.More news: Marriage survey mailout ahead of schedule
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