Consequently, in spite of efforts of OPEC and non-OPEC countries to artificially reduce output, the U.S. shale oil and gas producers start to export large volume of crude oil to world markets when the oil price exceeds $45 a barrel.
Brent for November settlement advanced $1.03 to $56.17 a barrel on the London-based ICE Futures Europe exchange.
Market participants were looking ahead to the U.S. Energy Information Administration's latest report on crude oil inventories due later Wednesday, after last week's larger than expected storage build. USA crude stockpiles likely rose by 2.7-2.9 million barrels for the week ended September 15, versus the previous week's official growth of 5.9 million barrels, analysts polled by Reuters and Bloomberg estimated on Monday.
Analysts at Panmure Gordon shared that the prices are now increasing since the last weeks as forecasts stated of increased demands from both the IEA and OPEC along with anticipated high demands from the U.S.as the oil refineries will resume their operations after Hurricane Harvey.
Inventories of diesel and other distillates slid to the lowest level since 2011 while exporters shipped 5.42 million barrels of oil and fuels amid the recovery from Hurricane Harvey, the report showed.
Hurricanes in the Gulf of Mexico have pushed up crude inventories as some US refineries have been shut by flooding.
OECD: countries still need to make reforms to improve growth
Canada is set to log the fastest growth among advanced economies this year with the country's projection raised to 3.2% from 3%. Uncertainty over the country's exit from the European Union will continue to hobble its economy, the OECD said.
Mueller Asked White House for Information About Pres
Mueller is asking the White House for documents related to some of Trump's most scrutinized actions while in office. But it's his job to make sure all documents related to these requests are being found and sent to Mueller's team.
Four Florida teams in AP Top 25 poll; Alabama firmly on top
With the win, Vandy is 3-0 to start the season for the first time since 2011, James Franklin's first of three with the program. I flipped Oklahoma State and Ohio State in the eighth and ninth spots this week on the basis of the Cowboys' work at Pitt.
The relatively bullish sentiment is supported by the International Energy Agency's (IEA) forecast that global oil demand growth in 2018 will average 1.4 million barrels a day.
Moreover, even if this week's OPEC meeting ends on a high note and supports the argument that their cuts have been effective, any revival in prices will be short lived thanks to the unstoppable USA shale industry, which rebounded from Hurricane Harvey far quicker than anyone had predicted.
On Friday the Organisation of the Petroleum Exporting Countries and other producers will meet in Vienna to discuss the progress of their deal to limit output.
Saudi Arabia and Russian Federation are interested in extending the production cut deal. The deal was extended in May through March 2018, but has been hindered by both a lack of compliance by some signatories and steady US shale output.
Elsewhere, gasoline futures gained slipped 0.26% to $1.643 a gallon, while natural gas futures fell 0.36% to $3.083 per million British thermal units.