Oil prices rally amid falling output forecast

New York: Oil prices soared as reports showed US crude output will decrease through mid-2016.

US Energy Information Administration estimated in its short-term Energy Outlook on Tuesday that total US crude oil production declined by 120,000 barrels per day in September compared with August, Xinhua reported.

"Crude oil production is forecast to decrease through mid-2016 before growth resumes late in 2016," the report said.

Oil prices were also supported as the US dollar slumped in the face of the dwindling expectation in the market for the Federal Reserve to raise interest rate by year-end.

The West Texas Intermediate for November delivery moved up $2.27 to settle at $48.53 a barrel on the New York Mercantile Exchange, while Brent crude for November delivery increased $2.67 to close at $51.92 a barrel on the London ICE Future Exchange.