Oil prices were 1.5 percent higher continuing on its momentum of last day. The prices for oil inched up after US Government cuts its outlook on oil production for the next year and as fuel inventories plunged.
Oil prices have been falling without a pause lately for the past few weeks, recently reaching their lowest since the 1st January, 2017. Despite the agreement amongst OPEC and some non-OPEC members to slash production the prices have not responded to these favorably to these agreements. The lack of discipline in cuts by OPEC members and non-members has led to an oversupplied market and underpriced fuel prices.
Brent crude futures were up 76 cents, or 1.6 percent, at $48.28 per barrel by 0429 GMT, while U.S. West Texas Intermediate (WTI) crude futures were at $45.82 per barrel, up 78 cents, or 1.7 percent.
Both settled about 1.4 percent higher on Tuesday.
The oil prices climbed sharply after reports of shortages in inventories surfaced, US Crude oil inventories fell by 8.1 million barrels to 495.6 million as reported by American Petroleum Institute (API).
