Oil edged up towards $64 a barrel on Tuesday, supported by the Forties pipeline outage in the North Sea, OPEC-led supply cuts and expectations that U.S. crude inventories had fallen for a fifth week.
But rising output in the United States has put a lid on gains. Shale production will rise to a record in January, according to a government forecast published on Monday, as higher prices encourage increased drilling.
The shutdown of the North Sea's Forties pipeline since last week has supported Brent, as Forties is the largest of the five crude grades underpinning the benchmark. On Dec. 12, Brent reached $65.83, its highest since mid-2015.