Crude oil rises after OPEC says market to be balanced in 2016
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 rose 28 cents to $44.06 a barrel by 0409 GMT, after falling about 1 percent on Monday to $44.15 for a fourth consecutive decline.
Brent crude, the global benchmark, was up 21 cents at $47.40 a barrel. The contract slipped 0.5 percent on Monday to $47.19 a barrel, also falling for four trading days in a row.
Oil is trending a little higher in the Asian period but still very much under pressure, said Ben le Brun, market analyst at OptionsXpress.
Further evidence of stockpiling, expectations of a hike in U.S. rates and anemic economic growth figures have helped push down prices in the last week.
Still, the comments from OPEC Secretary-General Abdullah al-Badri on Monday did provide a little bullish relief to the market.
Most of the oil supply increases in recent years have come from high-cost production, Badri said, in a reference to supply sources such as U.S. shale oil.
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