Oil prices have increased towards $47 a barrel on Tuesday due to expectations of lower US crude inventory and production.
Brent crude increased 26 cents at $46.63 a barrel, while the US crude was trading 38 cents higher at $44.38 a barrel, Reuters reported.
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Market intelligence company Genscape estimated fall in US inventories by 1.8 million barrels at Cushing, offering support to oil prices, while analysts anticipated the crude stocks to remain the same.
For the week ending 4 September, the US Energy Information Administration reported a decrease in US oil inventories by 897,000 barrels, which is bullish for West Texas Intermediate crude oil prices.
The International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC) have cut forecasts for non-OPEC and US oil supply in their latest reports, easing oversupply concerns for 2016.
With rising oversupply concerns and worries about Chinese economic activity and other Asian demand, Brent has dropped from above $63 a barrel since July.
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By GlobalDataIndustry group American Petroleum Institute is set to release its report on industry data today and the US Government’s Energy Information Administration will issue its report on crude stocks on Wednesday.
OPEC has refused to cut production to support prices even without the participation of non-OPEC countries such as Russia.
