Oil prices rose on Tuesday, on the news on the latest OPEC report that showed oil production from the cartel fell last month, Bloomberg reports.
According to the report, OPEC’s output in August fell by 79,000 barrels a day to 32.76 million, driven mainly by a decline in Libya, Gabon, Venezuela and Iraq.
OPEC has partnered with other producers, including Russia, to keep 1.8 million barrels a day of oil production off the market.
The exporters are trying to drain oversupply from the market and drive down global stockpiles of crude.
“This is due to the shooting up of demand for prompt-loading barrels and amid increasing sentiment that the oil market will rebalance over the next year with a major drawdown in crude and product stocks,” OPEC said in the report.
West Texas Intermediate crude oil for October delivery gained 27 cents, or 0.6%, to $48.34 a barrel, while Brent oil for November added 36 cents, or 0.7%, to $54.20.
International benchmark Brent crude edged 30 cents higher to $54.14 per barrel. Earlier in the day it traded as low as $53.42.
OPEC slightly raised its outlook for global oil demand in 2017 and 2018. The cartel’s experts believe the world will consume 96.77 million barrels a day this year and 98.12 million barrels a day next year.
OPEC also positively revised its forecast for world economic growth in 2017 from 3.4 percent to 3.5 percent.
"Global economic growth momentum has gained traction lately and has become more balanced, with all major economies now showing positive growth this year, a trend that is forecast to continue into 2018," OPEC said.