Oil prices have jumped after the release of industry data that indicated a drop in US crude inventory, following an almost three-month low.

Goldman Sach’s positive review about OPEC compliance to output cuts also supported the oil price increase.

US West Texas Intermediate crude CLc1 gained 81 cents to touch $48.53 a barrel, while Brent futures increased by 71 cents to trade at $51.63, reported Reuters.

Industry group, American Petroleum Institute stated that the US crude inventory decreased by 531,000 barrels last week against the analysts’ forecast of a 3.7 million increase.

If the fall in crude stocks gets validated by the official data to be released soon, it would be the first fall in US stocks after nine consecutive rises.

"Secondary sources said Saudi output fell in February to 9.797 million barrels per day."

Earlier, oil prices witnessed a steep fall after OPEC reported an increase in global oil inventory.

Secondary sources said Saudi output fell in February to 9.797 million barrels per day (bpd), while Riyadh told OPEC that it increased to 10.011 million bpd.

However, the Saudi Energy Ministry clarified that the difference between what the market observes as production and the actual supply levels was due to operational factors and other variables.

US investment bank Goldman Sachs stated in a research note to the news agency that compliance with production cuts remains high among the members of oil cartel.

It also stated that the oil market is still rebalancing, and it expects oil demand to exceed oil supply in the next quarter.