UAE: NOC to reduce oil production in November as expected by OPEC

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"Gasoline versus oil supply is one reason the petroleum markets are struggling", said Phil Flynn, senior market analyst at Price Futures Group, in his daily energy report.

According to the Energy Information Administration, crude oil product could hit 9.9 million barrels per day in 2018, which surpasses the prior high reached in 1970 of 9.6 million barrels per day.

Crude oil prices have started to trade lower starting Monday through Wednesday as the markets awaited the weekly inventory report which will show whether crude oil supplies have fallen or have risen. The EIA reported on Wednesday that US commercial crude oil inventories decreased by 6.0 million barrels from the previous week, compared to expectations that crude would draw by 1-million barrels.

November US crude was up 2 cents to US$50.47 as of 11:16am EDT (1516 GMT); Brent was down 11 cents to US$55.87 a barrel.

"The number of active drilling rigs in the USA increased last week, highlighting the fact that higher oil prices will inevitably lead to more production from US shale". However, total motor gasoline inventories increased 1.6 million barrels last week, and are in the upper half of the average range. Although West Texas Intermediate (WTI) crude found support above the $50/bbl level, prices closed at two-week lows around $50.40. US crude oil more often than not falls in the final three months of the year, according to a study performed by CNBC using hedge fund analytics tool Kensho.

Late Tuesday, American Petroleum Institute said crude stockpiles fell by 4.1 million barrels, while gasoline stockpiles were up by 4.2 million barrels.

As the United States heads into the fall, the end of driving season has many analysts forecasting a slower-paced drawdown for crude oil in the near future.

However, Middle Eastern oil producers are concerned the price rise will stir USA shale producers into more drilling and push prices lower again.

The move by OPEC is meant for warranting balance in the oil market. If the EIA reports a larger-than-expected draw in USA crude oil inventories, it would support crude oil prices.

Still, even the most bullish traders believe the Organization of Petroleum Exporting Countries and its allies, which include Russian Federation and Mexico, need to extend output cuts that are set to expire at the end of March 2018 to avoid a build-up in inventories.