West Texas Intermediate futures for January delivery climbed to $37.45 (+0.78%), while Brent crude rose to $40.55 (+1.10%) on expectations of slightly better demand after the Energy Information Administration reported that U.S. crude inventories fell 3.6 million barrels in the week ending December 4.

Nevertheless market participants expect the current supply glut to continue in 2016 keeping prices under pressure and limiting gains. Investors are also waiting for the Federal Reserve's meeting scheduled for the next week. The central bank of the U.S. is likely to raise its interest rates for the first time in nearly a decade. This would boost the greenback making the dollar-denominated crude more expensive for customers using other currencies.