Global oil prices picked up on Tuesday after OPEC released a report pointing towards globally higher demand and lessening production.
Brent crude hit $47.72, 3.18 percent more than the previous session at 12:48 GMT on Tuesday.
Oil price climbed to as high as $47.87 during the day, after the release of the OPEC report.
OPEC’s latest report estimates global oil demand to rise by 1.20 million barrels per day (mb/d) to around 94.2 mb/d in 2016 and continue the upward hike through 2017. World oil demand is to reach 95.33 mb/d in 2017.
The cartel’s report argues that 'market conditions will help remove overall excess oil stocks in 2017.'
Demand for OPEC crude in 2016 is expected to average 31.9 mb/d, an increase of 1.9 mb/d over last year. In 2017, demand for OPEC crude is projected to surge to 33 mb/d with a gain of 1.1 mb/d over 2016.
Amid the global demand rise, non-OPEC oil supply is expected to contract by 880 thousand b/d to average 56.03 mb/d in 2016, further adding to the rise of oil prices.
Further upward movement is expected from oil prices in anticipation of official data from API and U.S. Department of Energy, set to be released on Tuesday and Wednesday.
By Zeynep Beyza Kilic
Anadolu Agency
zeynep.karabay@aa.com.tr