Oil prices grow as US inventories drop
Oil prices have risen above $48 a barrel due to a drop in US stocks by 8.1 million barrels last week.
The US Government forecast also indicates a reduction in crude production, although the OPEC considers that the market will continue to witness glut even in 2018.
The American Petroleum Institute indicated the drop in US crude inventories.
Official inventory data from the US Government's Energy Information Administration (EIA) is expected today.
Brent crude LCOc1, the global benchmark, grew 73 cents to touch at $48.25 a barrel, while US crude CLc1 increased by 81 cents to $45.85, reported Reuters.
FXTM analyst Lukman Otunuga was quoted by the news agency as saying: "While further upside could be expected in the short term amid the speculations of a cut in US production, gains may be limited by the firm oversupply dynamics of the markets."
The drop in US inventories is expected to enable the market to rebalance.
The last three years have seen the oil market in a state of oversupply, despite OPEC-led countries reducinged their output in 2016 and the extended it into this year.
Although the production cut by OPEC has supported prices, the recent weeks have seen production grow in Libya and Nigeria, the two OPEC countries exempted from the cut.
In the monthly report, OPEC’s output grew by 393,000bpd in June to 32.611 million bpd due to high production from Libya and Nigeria, as well as from Saudi Arabia and Iraq.
At a press conference in Istanbul, Turkey OPEC Secretary-General Mohammad Barkindo was quoted by the news agency as saying: "We remain very optimistic ... (about) helping the market to rebalance itself.”