Oil prices rose on the IEA report and the Baker Hughes data. The oil driller Baker Hughes reported on Friday that the number of active U.S. rigs declined by 26 rigs to 413 last week. It was the lowest level since December 2009.
The International Energy Agency (IEA) released its Medium-Term Oil Market Report (MTOMR) on Monday. The agency said that the oil market will rebalance in 2017 as the U.S. oil output is expected to decline.
"Only in 2017 will we finally see oil supply and demand aligned but the enormous stocks being accumulated will act as a dampener on the pace of recovery in oil prices when the market, having balanced, then starts to draw down those stocks," the IEA noted.
WTI crude oil for April delivery increased to $33.61 a barrel on the New York Mercantile Exchange.
Brent crude oil for April rose to $34.86 a barrel on ICE Futures Europe.