LONDON: Oil prices rose on Wednesday, underpinned by an unexpected fall in US crude inventories, but were still close to multi-year lows as supplies remained abundant and as OPEC lowered the demand outlook for its exports.

At 1448 GMT, Brent crude futures were up 87 cents at $36.88 a barrel, while West Texas Intermediate (WTI) futures were up 88 cents at $37.02.

A day earlier Brent touched $35.98, its lowest since July 2004.

In a sign of growing competition for market share among OPEC members in Asia, Iraq signed a $1.4 billion deal to supply 160,000 bpd to Indian refiners Reliance and Indian Oil Corp.

Iran is expected to add 500,000 bpd of crude exports next year and Iranian officials have already met with Indian refiners seeking proposals on how to make their crude more competitive.