Yemisi Izuora/Agency Report
Crude prices firmed on thursday after the International Energy Agency (IEA) said non-OPEC production would fall this year by the most in a generation and help rebalance a market dogged by oversupply.
IEA chief Fatih Birol said low oil prices had cut investment by about 40 percent over the past two years, with sharp falls in the U.S., Canada, Latin America and Russia.
Benchmark Brent crude futures were up 12 cents at $45.92 a barrel by 12:04 GMT (7:04 a.m. CT). U.S. crude futures were 4 cents higher at $44.22. Both have gained about 70% from lows hit between January and February.
“It looks very strong at the moment, sentiment is bullish, technicals look fine, so I rather see prices rising further from here,” Commerzbank analyst Carsten Fritsch said.
The drop in supply from some producers, however, could be offset by increased output in countries such as Russia and Iran.