Crude oil rose on Tuesday after a forecast that US shale oil output would record its first monthly decline in more than four years and on tensions in Yemen, where top oil exporter Saudi Arabia is embroiled in a civil war.
Brent crude LCOc1 was up 32 cents at $58.25 a barrel by 1339 GMT, while U.S. crude CLc1 was up 57 cents at $52.48.
The US Energy Information Administration (EIA) said on Monday it expected US shale production to fall by 45,000 barrels per day (bpd) to 4.98 million bpd in May.
Shale production has helped boost US oil output by more than 4 million bpd since 2010 and has been a key factor behind the collapse in world oil prices over the last year.
However, a collapse in oil prices from above $115 a barrel last June has now begun to hit exploration.
“It’s a small change, just a drop in the ocean, but an excuse to buy,” said Carsten Fritsch, analyst at Commerzbank.
“A lot of speculative financial investors think oil is cheap and are looking for a reason to get into the market.”
Oil also found support from tensions in the Middle East, where fighting is continuing in Syria, Iraq and Yemen.
