Investors will closely watch the weekly change in the U.S.' crude oil production and inventories that will be released by the EIA at 1430 GMT on Wednesday. The increase in refinery output of petroleum products has outpaced the increase in USA consumption of petroleum products such as distillate fuel oil, gasoline, and propane, leading to an increase in exports.
"According to secondary sources, total OPEC-14 preliminary crude oil productions averages 30.55 million bpd in February, a decrease of 221,000 bpd over the previous month", the Organization of the Petroleum Exporting Countries said in the report.
Brent was up 98 cents, or 1.47 percent, to $67.63 per barrel, while West Texas Intermediate climbed $1.50, or 2.64 percent, to $58.37 per barrel.
Oil prices have risen since the beginning of this year thanks to supply cuts led by OPEC.
The EIA said Tuesday in its Short-Term Energy Outlook report for March that it now expects crude oil production in the U.S.to average 12.3 million barrels per day (bpd) in 2019 and 13 million bpd in 2020.
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Forecasts slowed United States production to a record of 13 million barrels per day (bps) until the third quarter of 2020, instead of the second quarter of previous forecasts.
Brian Stutland, chief investment officer at Equity Armor Investments, said, "We're seeing some supplies tighten a little bit.and also the correlation between oil and the stock market and demand coming back into the picture has sort of driven it: oil lagged a little bit as the dollar strengthened, and I think it's trying to play catch-up".
Two sources told Reuters that the United States aims to curb Iran's crude exports by about 20 percent to below 1 million barrels per day from May, likely reining in waivers for Tehran's remaining customers. Petrol stocks fell by 5.8 million barrels, compared to analysts' forecasts in a 2.5 million barrel survey at Reuters.
EIA's data also showed that on the exports side, USA crude oil exports increased while domestic production rose as well. Meanwhile, distillates stockpiles unexpectedly increased by 0.38 million barrels.