Oil prices have risen as markets gained confidence despite continuing supply glut worries.
Brent crude futures LCOc1 were up 35 cents and traded at $44.88 per barrel, while the US West Texas Intermediate (WTI) crude rose 51 cents at $43.69 a barrel, Reuters reported.
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Traders said that investors are putting in new cash into the market due to which sentiment in the entire commodity complex turned positive despite ongoing oversupply.
Oil prices also gained support as producers are locking in production and are taking advantage of high prices.
French investment bank Natixis told the news agency: "We would expect producers in the US taking every opportunity to aggressively hedge as soon as there is opportunity when oil prices recover for short periods of time."
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The market also looks positive due to declining production in the US, specifically where most of the producers are closing due to a 70% price rout since 2014.
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By GlobalDataNatixis anticipates a fall in oil production in the US by at least 500,000bpd to 600,000bpd in 2016.
Meanwhile, Qatar’s former energy minister Abdullah bin Hamad Al-Attiyah told the Gulf Times that oil prices are cyclical and they will rise again.
