Investing.com - Oil prices rose on Tuesday after the head of OPEC forecast a more balanced market next year and the U.S. energy department said domestic output is likely to fall further, though gains were limited as the overall picture of a market in glut remains.
U.S. crude was up 0.74% to $44.20 a barrel, while Brent futures were up 0.28% to $48.06 at 8.06 AM Eastern Time.
OPEC Secretary-General Abdullah al-Badri said Monday that the oil market should become more balanced in 2016.
Further evidence of stockpiling, expectations of a hike in U.S. rates and anaemic economic growth figures have helped push down prices in the last week.
Oil is unlikely to return to $80 a barrel before the end of the decade, despite unprecedented declines in investment, as annual demand growth struggles to top 1 million barrels per day, the International Energy Agency said on Tuesday.
The EIA also said it expected U.S. shale production to fall for an eighth consecutive month in December.