OPEC Energy Production Fell In August, Oil Stuck At $50?

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Investors and analysts were also looking ahead to monthly reports from OPEC and the International Energy Agency later this week.

"We believe that Irma will have a negative impact on oil demand but not on oil production or processing", the analysts said.

The U.S. Energy Information Administration will release its official weekly oil supplies report at 10:30AM ET (1430GMT).

The strength of the US dollar-which plays a role in the price of oil (a stronger USA dollar drives the price of oil down)-is on a slight decline trend, EIA also said. This means that the spot price of oil stocks is higher than the forward price. Gasoline prices in the U.S. have already corrected sharply after touching a two-year high earlier this month.

"Oil demand has been quite robust in 2Q17, particularly in the Americas and Europe", the report said.

"The global economy continues to hum along, though political headwinds and weather conditions have complicated matters in recent weeks", a report published Tuesday by the National Bank of Kuwait read.

At the start of August, the OPEC meeting raised hopes of better compliance with Saudi indicating more export cuts.

Reports also suggest that Saudi will cut allocations by 0.35 mbpd in October.

For this year, the IEA sees the need for OPEC crude at 32.7 million bpd, in line with the current production.

USA crude oil stockpiles rose sharply last week and gasoline inventories fell the most on record as refineries continued to be hampered by damage from Hurricane Harvey, the Energy Information Administration said on Wednesday.

Refinery use fell a further 2.0% on the week due to the continuing impact of outages as flooding caused substantial damage, although markets had been expecting a recovery in capacity use for the week.

The kingdom and Kazakhstan said such an extension "would be considered in due course as market fundamentals may dictate", according to a separate Saudi statement.

Gasoline stocks fell 8.4 million barrels, the largest draw on record, compared with analysts' expectations in a Reuters poll for a 2.1 million-barrel drop. Refining runs on the U.S. Gulf Coast hit a record low in the week to September 1, just after the storm, due to shutdowns. The cartel now believes the world will consume 96.77 million barrels a day this year and 98.12 million barrels a day next year. A more meaningful reduction in global inventories will be imperative for establishing a firm floor for oil prices. Prices are still less than half their levels in mid-2014. Since the mid-1980s glut, oil supply and demand has grown at a remarkably consistent rate only a little bit slower than global gross domestic product.

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