Oil prices rose to a three-month high today after data from the International Energy Agency (IEA) showed a lower than expected build of crude oil stocks in the United States.
It said crude stocks had risen by 1.29m barrels to 483.69m barrels in the week to April 10, coming in below a forecast for a 4.1m barrel rise by a Reuters survey of analysts.
Earlier the energy watchdog kicked off the day by hiking its projections for global oil demand growth, as countries within Europe as well as India and the United States start to consume more of the black stuff.
Its monthly oil-market report saw the demand growth estimate raised by 90,000 barrels a day to 93.6m barrels a day, or 1.1m barrels a year.
But the IEA also warned that this might not be enough to prompt the oil market's recovery anytime soon, and that the future outlook is only getting murkier".
"That's in part because the backdrop against which the adjustment is playing out is constantly changing," it said.
Oil has shed around half of their value since June last year and is currently trading at just under $60 per barrel.
"One of the many questions hanging over the market today is, how quickly could Iran be expected to ramp up output and exports if the agreement ere to be made permanent?"
Analysts think Iran will eventually ramp up oil production if it can agree a final deal with world powers over its controversial nuclear programme in June. However policy-makers have warned an agreement isn't a certainty.
And in other news, a report released by research group the Conference Board, said that the positive economic effects of low oil prices have "probably already played out".
"For the next six months, much will depend on whether there will be any significant reduction in production of oil, which seems highly questionable at this point," it said.