Ships were moving through the Suez Canal again a day after tugs refloated the Ever Given container carrier, which had blocked the passage for almost a week.
Without the production cuts, limited storage capacity could be saturated and the danger of a fall in prices -- currently hovering around $60 per barrel -- is real.
The gains appeared to stabilize the market that had slumped from early this month, when prices hit their highest levels this year on expectations for demand recovery.
Brent crude was up 6 cents or 0.1pc to $64.59 a barrel by 1:33 p.m. ET (1733 GMT), while U.S. oil for delivery in April fell 22 cents, or 0.4pc, to $61.20 a barrel ahead of expiry.
"Total oil demand is foreseen to reach 96.3 million bpd with most consumption appearing in the second half," OPEC said in the report.
"This year's demand growth will not be able to compensate for the major shortfall from 2020 as mobility is forecast to remain impaired throughout 2021."
The report added that the additional burden on the import bill would also add to fiscal challenges as the government has already lowered the petroleum levy to Rs13 per litre to maintain petroleum prices at current levels.
The Canadian dollar was trading 0.1% lower at 1.2661 to the greenback, or 78.98 US cents, having touched its strongest intraday level since last Thursday at 1.2575. Last Thursday, it touched a three-year high at 1.2464.