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.

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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.