Brent crude oil traded steadily below $119 on Wednesday morning after the US Energy Information Administration and the Organization of the Petroleum Exporting Countries both increased their outlook for oil consumption based on recent signs of recovery within the global market.
The commodity traded at $118.63 at 10:46 GMT on Wednesday morning.
According to CNBC, the OPEC monthly report stated that oil consumption will grow by 840,000 barrels per day in 2013, an 80,000 bpd increase from original expectations. OPEC also reported that crude demand would rise to an average of 29.78 million bpd, 130,000 bpd more than previously forecast.
The higher figures are attributed to demand growth and little change in supply prospects. As the world's major economies show signs of recovery, most are expecting oil consumption to increase.
However, gains from the reports were capped by fears of a currency war prompted by recent weaknesses in the yen and the strong euro rally.
Investors will be waiting for the result of a meeting of finance ministers and central bankers from across the globe in Moscow this week. The meeting is expected to focus on recent tension over controlling exchange rates through fiscal policy.
After the Japanese government enacted a series of policies that indirectly decreased the yen's value, many are worried that other governments could follow suit.
Geopolitical tensions in the Middle East have eased after Iran began to convert some of its high grade uranium into reactor fuel.
The process will slow the nation's progress toward making a nuclear bomb and is expected to give the West more time to negotiate with the nation over its nuclear development program.
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