As the market eyed a producers' meeting later this month for some reprieve, the International Energy Agency (IEA) said Tuesday that growth in oil demand was slowing while supply was rising.
The Paris-based organisation warned the glut would linger "at least through the first half of next year", reversing its earlier projection the oversupply would be soaked up in the latter part of 2016.
At around 0315 GMT, US benchmark West Texas Intermediate for delivery in October was up 21 cents to USD 45.11 and Brent crude for November added 18 cents to USD 47.28 a barrel.
"Another nail in the coffin overnight, as both OPEC and the International Energy Agency revised their oil demand figures for 2017 down," said Jeffrey Halley, senior market analyst at OANDA trading.
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"Long-suffering oil bulls will now turn nervously to the US EIA's commercial crude inventory numbers to be released this evening in New York," he said.
The US Energy Information Administration will release later Wednesday data on US commercial crude inventories in the week to September 9, a closely watched measure of demand in the world's top oil consumer.
Traders will be watching for any deals to freeze or cut output when OPEC and non-OPEC producers meet in Algeria later this month.
"There are still major doubts about whether a deal can be done," IG Markets said in an analysis.
"The world's largest producer, Saudi Arabia, is lukewarm about a freeze, while Iran and Iraq are still increasing output following wars and sanctions and they're unlikely to support a deal until they're pumping at full capacity.
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