US oil has edged over $45 per barrel again today as oil prices hit their highest since November

Billy Bambrough
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Oil traders are betting that demand will pick up in the second half, as well as US production declining (Source: Getty)

A decline in US crude oil stockpiles has pushed global oil prices to their highest since November last year.

Brent rose $1.33 a barrel to $47.05 in early afternoon trading in London, while West Texas Intermediate reached highs of $45.18 per barrel earlier in the day.

Yesterday it was reported US supplies fell by 1.07m barrels last week, the industry-funded American Petroleum Institute found.

Meanwhile, The World Bank said that demand will pick up this year along with a further fall in US output in the second half of 2016, boosting its forecast for oil prices this year.

Read more: Ex-Shell economist warns world has much less oil than thought

There is concern that the oil price will replicate last year's peak in the first half of the year before falling back in the second half. Last year oil peaked in May at almost $70 per barrel.

The low oil price has proved difficult for many of the world's big producers who are in the midst of reporting one of their worst ever quarters.

Earlier this month a meeting between oil cartel Opec and Russia to try and agree a production freeze at January levels broke apart without a deal.

Despite being hailed as a landmark meeting between Opec and other producers, its failure had little effect on the oil price.

Read more: Oil prices start to climb on news of Saudi Arabia's share offering in Aramco

Earlier indications that US production is beginning to drop off in the face of prolonged low prices had begun to support the market.

The global supply glut is expected to be cleared by the end of this year if US inventories continue to decline.