Oil is recovering

Oil is rallying on Tuesday, thanks to some bad US shale production figures.

The US Energy Information Administration (EIA) forecasted that oil production will fall to its lowest level since April 2014 in December, predicting output of just under 4.5 million barrels per day.

Restriction of supply should boost prices and that is helping oil futures recover on Tuesday, after slumping in Monday trade.

Here's how the two major oil prices look at just after 7.35 a.m. GMT (2.35 a.m. ET). First, US West Texas Intermediate:

And here is Brent:Prices, particularly in the US, are also getting a boost from reports that oil tycoon Harold Hamm is in the running to head the Department of Energy under Donald Trump. Hamm is the CEO of Continental Resources and would most likely be extremely bullish on the US energy sector.

However, Tuesday's rally should be heavily qualified. Both crude and WTI are nowhere near October's recent highs, when both were above $50 a barrel. Gains are being tempered by the looming OPEC meeting at the end of the month. There are talks of a possible production cut but members such as Iraq and Russia are reportedly not keen.