A fall in the number of US rigs drilling for oil also underpinned prices, but growth in USA crude output cast a shadow over the market.
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Despite this, crude has been generally supported by the ongoing Forties pipeline system outage in the North Sea, which provides crude underpinning Brent futures.
Brent crude settled up 39 cents or 0.6 percent to $63.80 a barrel. USA crude futures fell 14 cents to $57.16. On Dec. 12, Brent reached $65.83, its highest since mid-2015.
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"This should ensure buying pressures remain at the fore of the Brent structure until the turn of the year at the very least", said Stephen Brennock of oil broker PVM.
Oil ticked up after reports that a missile was sacked at the Saudi Arabian capital Riyadh from Yemen, but Saudi Arabia said it intercepted the missile and no casualties were reported.
While the Organization of Petroleum Exporting Countries have moved to cut production, expectations of continued USA shale production remain a deterring factor. The U.S. Energy Information Administration showed a similar surplus for that period and indicated a supply overhang of 167,000 bpd for all of 2018.
The American Petroleum Institute (API) reported a draw of 5.222 million barrels of United States crude oil inventories for the week ending December 15, marking three large draws in as many weeks.
Threatening to undermine the OPEC-led efforts to tighten markets is US crude production C-OUT-T-EIA, which has soared by 16 percent since mid-2016 to 9.8 million bpd, fast approaching that of top producers Russian Federation and Saudi Arabia, which are now pumping around 11 and 10 million bpd respectively.