Oil prices have increased by more than 1% after new data highlighted a fall in the US drilling.

Global benchmark Brent crude oil increased 70 cents at $48.17 a barrel, while the US crude oil futures stood at $45.38 per barrel, a rise of 70 cents, Reuters reported.

For three straight weeks drillers in the US have reduced the number of rigs that are in operation.

"While operators are seeking an average cost reduction of 20%-30% on projects, supply chain savings through squeezing the service sector will only achieve around 10%-15% on average."

Data released by Baker Hughes highlighted the number of active US oil-drilling rig dropping eight to 644 as of 18 September.

The active US rig count includes natural gas rigs, which have fallen by 1,089.

According to investment bank Goldman Sachs report, rig data pointed to a decline in oil production in the country between the second as well as fourth quarters of over 250,000 barrels per day (bpd).

Energy consultancy Wood Mackenzie told the news agency: "While operators are seeking an average cost reduction of 20%-30% on projects, supply chain savings through squeezing the service sector will only achieve around 10%-15% on average."

Analysts said that prices may remain at low levels for some time as other producers in the Middle East and Russia are producing high levels even after a reduction in US spending plans.