Oil prices have increased after a report from the International Energy Agency (IEA) revealed that the fuel slump may have reached its peak.

Brent crude futures edged up 67 cents and were at $40.72 a barrel, while the US crude futures rose up 76 cents and traded at $38.60 a barrel, Reuters reported.

Prices also gained support due to a weaker dollar that will make fuel cheaper for importers holding other currencies.

"IEA’s latest report noted that non-OPEC production in 2016 is estimated to fall by 750,000 b/d."

In its monthly Oil Market Report (OMR) for March 2016, IEA said that oil might have bottomed and low prices were beginning to impact crude output outside Organization of the Petroleum Exporting Countries (OPEC).

IEA’s latest report noted that non-OPEC production in 2016 is estimated to fall by 750,000 b/d to 57 million b/d, 100,000 b/d lower than predicted in February’s report.

In February, OPEC crude oil production dropped by 90,000 b/d to 32.61 million b/d.

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Sharp falls in demand growth especially in the US and China dragged growth worldwide to a one-year low of 1.2 million b/d in the fourth quarter of 2015. During 2016, a gain of an additional 1.2 million b/d is expected.

IEA’s March OMR focused on the proposal made by Saudi Arabia, Venezuela, Qatar and Russia to freeze output at January levels.

Image: Non-OPEC production in 2016 is estimated to fall by 750,000 b/d. Photo: courtesy of OECD/IEA.