Oil prices have increased more than 1.5% after US industry data highlighted a fall in crude inventories.

Benchmark Brent crude oil rose 75 cents a barrel at $48.73, while the US light crude edged up 85 cents at $46.35, Reuters reported.

Data published by the American Petroleum Institute revealed a fall in US crude stocks by 12.1 million barrels last week.

During the last two years, crude inventories in the US have been at record highs.

"The big crude draw was a temporary move."

Oil production in the US fell due to Tropical Storm Hermine, which threatened the Gulf Coast refining region last week prior to moving to the country’s East Coast.

Hermine rose up over the Gulf of Mexico and later hit Florida as a Category 1 hurricane.

As a precautionary measure, 11.5% of production in Gulf of Mexico was closed.

PVM Oil Associates analyst Tamas Varga told the news agency: "The big crude draw was a temporary move."

The Organisation of the Petroleum Exporting Countries and Russia are set to meet and discuss the output freeze proposal at a meeting in Algeria, which will be held from 26-28 September this year.

According to analysts’ expectations, oil prices are set to fall ahead of the meeting as markets are well-supplied.