The International Energy Agency (IEA) said in its monthly report on Thursday that the oil market would balance in the second half of the year. The agency noted that a deal on the freeze of the oil output would have only limited impact on the production.

The IEA also said there were signs that the decline in US shale production accelerated.

The IEA noted that the Organization of the Petroleum Exporting Countries' (OPEC) oil output declined by 90,000 barrels per day (bpd) in March to 32.47 million bpd due to lower output from Iraq and Nigeria.

Saudi Arabia's output fell by 30,000 bpd in March to 10.19 million bpd.

Non-OPEC production dropped by 90,000 bpd in February to 57.1 million bpd.

Non-OPEC output is expected to decline by 710,000 bpd in 2016.

The U.S. Labor Department released its jobless claims figures on Thursday. The number of initial jobless claims in the week ending April 09 in the U.S. decreased by 13,000 to 253,000 from 266,000 in the previous week. The previous week's figure was revised down from 267,000.

Analysts had expected jobless claims to rise to 270,000.

Jobless claims remained below 300,000 the 58th straight week. This threshold is associated with the strengthening of the labour market.

Continuing jobless claims decreased by 18,000 to 2,171,000 in the week ended April 02.

The Organization of the Petroleum Exporting Countries (OPEC) released its monthly report on Wednesday. OPEC's output rose by 15,000 barrels per day (bpd) to 32.25 million bpd in March, according to the report. The increase was mainly driven by higher output from Iran, Iraq and Angola, while production declined in UAE, Libya and Nigeria.

Iran's oil production rose by 15,000 bpd to 3.4 million bpd.

Supply from non-OPEC members is expected to fall by 730,000 bpd in 2016, 30,000 bpd more than expected last month.

Global oil demand is expected to climb by 1.20 million bpd in 2016, down by 500,000 bpd from March, OPEC noted.

"Economic developments in Latin America and China are of concern. There is great uncertainty as to whether weakening economic activity in Latin America and signals of a slowdown in China will be reflected in oil demand data, especially for China," OPEC said.

Demand for OPEC's crude is expected to by average 31.46 million bpd in 2016, down 60,000 bpd from March.

The Fed released its Beige Book on Wednesday. The central bank said that the U.S. economic activity continued to expand in late February and March across districts.

The economy expanded modestly or moderately in most districts, the Fed said.

The Fed noted that consumer and business spending rose, the labour market continued to strengthen, while prices increased modestly across the majority of districts.

Manufacturing and construction activity rose in most districts in late February and March.

(raw materials / closing price /% change)

Oil 41.62 -0.34%

Gold 1,243.10 -0.42%