Mubasher: Oil prices recovered on Tuesday, following reports that production at the world’s biggest producers dropped during the third quarter, according to Reuters.

However, the return of Saudi Arabia’s supply and persisting demand worries kept gains in check.

By 10:30 am GMT, US Nymex crude futures jumped by 0.98% to $54.60 per barrel (pb), while international benchmark Brent futures climbed to $59.80 pb.

Both contracts posted their biggest quarterly drop this year on Monday, due to a sluggish global economic growth and the ongoing trade conflict between the US and China.

Output from the Organization of the Petroleum Exporting Countries (OPEC) dropped last September to 28.9 million barrels per day (bpd), the lowest level since eight years, 750,000 bpd lower than August’s revised total, a Reuters survey showed.

Moreover, Russia’s crude output declined to 11.24 million bpd, month-on-month from 11.29 million bpd, but this still remained above the quotas agreed on under the supply-cutting deal with OPEC, sources told the news agency.

Furthermore, US crude production dropped by 276,000 bpd to 11.81 million last July, owing to a decline in the offshore Gulf of Mexico output, as per shown by the Energy Information Administration’s (EIA) monthly report.

Market participants will be focusing on the American Petroleum Institute’s (API) weekly report on the US crude inventories, due to be released later in the day and to be followed by the EIA’s official figures on Wednesday.