Opec sees oil consumption growing in '17

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"Impact of the 2017 Atlantic Hurricane season continues to be seen in today's report with a build observed in the commercial crude stockpile and drawdowns in refined products", said Abhishek Kumar, Senior Energy Analyst at Interfax Energy's Global Gas Analytics in London.

In May, Opec and non-Opec members agreed to extend production cuts of 1.8m barrels per day for a period of nine months until March 2018 but rising production from the U.S., Nigeria and Libya has undermined the oil cartel's efforts to curb excess supply.

Meanwhile, monthly reports from the Opec and International Every Agency due Tuesday and Wednesday, respectively, are expected to provide market participants with an update on Opec production and global demand forecasts. "The focus now shifts to the post-Harvey scenario", he said.

West Texas Intermediate crude was up 1% to $48.71 a barrel on Wednesday morning.

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The spread, or difference, between WTI and Brent has widened in recent weeks because some crude oil in the United States remains locked in storage. Refinery utilization rates fell by 2 percentage points to 77.7 percent, the lowest rate since 2008. So far, the new president has yet to score any major legislative victories.

The Kuwaiti bank said recovery may be limited by any increase in US shale oil production, which could be likely if oil prices continue to rise.

U.S. gasoline inventories fell 8.4 million barrels last week, the largest weekly drop since the U.S. Energy Information Administration began tracking data in 1990. Gasoline stockpiles were down 8.4 million barrels for the week, while distillate stockpiles fell 3.2 million barrels, according to the EIA.

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