Oil climbed from a two-week low amid speculation that the buildup of U.S. crude inventories will soon end as refinery demand increases.

Futures rose 0.8 percent in New York. U.S. stockpiles probably increased by 1.3 million barrels last week, the smallest gain since September, according to analysts surveyed by Bloomberg. The Energy Information Administration cut its U.S. crude production outlook for 2016 Tuesday. Supply from non-OPEC countries will probably stop growing by 2020, the International Energy Agency said Tuesday in a report.

The oil market has experienced a slump of 43 percent in the past year amid a global glut. U.S. stockpiles remain more than 100 million barrels above the five-year seasonal average after producers cut costs to maintain output. The Organization of Petroleum Exporting Countries is considering raising its official production target by 1 million to include the output from new member Indonesia, according to two OPEC delegates. OPEC said it pumped 31.57 million barrels a day in September, compared to its current 30 million target. OPEC meets Dec. 4 in Vienna.

West Texas Intermediate for December delivery advanced 34 cents to settle at $44.21 a barrel on the New York Mercantile Exchange. The contract fell to $43.87 on Monday, the lowest close since Oct. 27.

Brent for December settlement climbed 25 cents, or 0.5 percent, to end the session at $47.44 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude closed at $3.23 premium to WTI.

Source : Bloomberg