AKIPRESS.COM - Oil prices gained on Tuesday on expectations that a slowdown in U.S. oil production will accelerate, though the continued supply from the rest of the world kept a cap on the gains.

Other major producers, from the Organization of the Petroleum Exporting Countries to Russia, are continuing to pump oil at speed as they look to defend their market share, reports WSJ.

“U.S. crude oil production has begun to turn lower more sharply than we had expected, making it likely that non-OPEC production growth will turn from expansion to contraction in 2016 for the first time since 2008,” analysts at Deutsche Bank said in a report. “Even so, we estimate the oil market will remain oversupplied in 2016.”

Brent crude, the global oil benchmark, rose 0.9% to $48.40 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.9% at $44.82 a barrel.

Oil prices have been trading largely sideways this month following the turbulence of August, when markets were rattled by mounting signs of a slowdown in China, the world’s No. 2 oil consumer. Brent is down 3.30% so far in September, while WTI is down around 9%.