OPEC on Wednesday said world oil demand will fall more steeply in 2020 due to the coronavirus pandemic and said next year's recovery faces large uncertainties, pointing to growing headwinds for the group and its allies in supporting the market.
United States crude oil, petrol and distillate inventories fell last week as refiners ramped up production and demand improved, a government report showed.
Brent crude was up 95 cents or 2.1% at US$45.44 a barrel by 11:02 a.m. EDT (1502 GMT), after falling around 1% on Tuesday.
West Texas Intermediate oil was up 9 cents, or 0.2%, at $41.70 a barrel, having dropped 0.8% in the previous session.
US fuel demand rose to 19.37 million barrels per day last week, the highest since March, data from the Energy Information Administration (EIA) showed, while crude output fell to 10.7 million barrels per day (bpd) from 11 million bpd.
USA crude oil, gasoline and distillate inventories fell last week as crude production dropped sharply and refiners ramped up production, the Energy Information Administration said on Wednesday.
The American Petroleum Institute said on Tuesday that crude stocks fell by 4 million barrels last week, more than analysts' expectations of a 2.9 million-barrel draw.
The EIA's downward revision on Tuesday to a key USA oil production forecast for this year also supported prices.
In India, refined fuels consumption fell to 15.68 million tonnes in July, down 11.7% year-on-year and 3.5% below June's levels, data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas showed.