Oil prices have increased following a report that predicts a fall in US fuel inventories for the fifth straight week.  

Benchmark Brent crude was up 51 cents and traded at $51.38 per barrel, while the US West Texas Intermediate (WTI) crude futures increased 53 cents and traded at $49.22, Reuters reported.

The prices rose as a result of a report released by the American Petroleum Institute (API), which showed that crude stocks in the US likely fell by 7.6 million barrels.

"Security conditions in Nigeria and Libya seem to us the most acute uncertainties in the market."

Traders are watching for the report to be released by the US Government's Energy Information Administration (EIA) regarding official stockpile numbers.

PIRA executive chairman Gary Ross told the news agency that a planned deal by the Organization of the Petroleum Exporting Countries (OPEC) members to cut production may lead to only modest price rises.

Jason Gammel of US investment bank Jefferies said due to rivalries within OPEC, the deal may not be implemented successfully.

Gammel further added: "Security conditions in Nigeria and Libya seem to us the most acute uncertainties in the market."