Oil prices extended their recent rally in Asia today on hopes that increasing demand and a decline in US crude production would ease a supply glut.

This supply glut has depressed the market for more than a year. 

The two main crude contracts hit a six-year low during the third quarter due to a fears about an oversupply, China's economic crisis and expectations for a US rate rise. 

But they have surged recently as the US Federal Reserve shows signs it will hold off hiking rates - a rise would strengthen the greenback, making dollar-priced oil more expensive - while recent data from Beijing have soothed nerves. 

Abdalla Salem El-Badri, secretary-general of the Organisation of the Petroleum Exporting Countries, said yesterday that global demand is expected to rise more than projected this year, and next would see a further increase supported by "improvement in global economic activities". 

US benchmark West Texas Intermediate for November delivery climbed 0.49% to $49.67 and Brent crude for November advanced 0.45% to $53.29 a barrel in late-morning trade. 

WTI is up nearly 30% and Brent almost 24% higher after hitting more than six-year lows in late August.