Oil prices increased on Tuesday following a forecast made by OPEC of a balanced market in 2016.

Brent crude rose 9 cents to $47.28 a barrel, while US crude went up 23 cents to $44.10 a barrel, Reuters reported.

OPEC Secretary-General Abdullah al-Badri’s comments on Monday provided a little bullish relief to the market.

"We see less non-OPEC supply. And we see an increase in the demand for OPEC crude."

Abdullah al-Badri said: "The expectation is that the market will return to more balance in 2016. We see global oil demand maintaining its recent healthy growth.

"We see less non-OPEC supply. And we see an increase in the demand for OPEC crude."

The US energy department said that domestic output may decline further even though gains were limited.

The International Energy Agency said that even due to unprecedented declines in investment, oil price is unlikely to return to $80 a barrel before the end of the decade.

According to Badri, most of the oil supply increases in recent years have come from high-cost production.

In December, total output is expected to fall by 118,000 barrels per day (bpd), according to EIA data.