Oil prices have risen slightly following data that highlighted tightening of the US market, with declining supply and inventories.

Brent rose 90 cents a barrel at $52.82, while the US light crude increased $1.18 a barrel to high of $49.71, Reuters reported.

Data released by the American Petroleum Institute (API) found a fall in US crude stocks and distillate stockpiles last week.

"The market has just realised the extent of the US crude oil production decline and is pricing this in."

The figures suggest oil production in the country particularly from shale, is beginning to drop following the collapse in prices since 2014.

Phillip Futures oil analyst Daniel Ang told the news agency: "The market has just realised the extent of the US crude oil production decline and is pricing this in."

Investors are watching for the data to be released by the Energy Information Administration (EIA) on US oil market figures.

According to the International Energy Agency, world oil demand is expected to rise by around 1.7 million barrels per day (bpd) in 2015.

The EIA said global oil demand may rise in six years in 2016 and forecasts a decline in the US oil output to 8.86 million bpd from an average of 9.25 million this year.