OPEC President Qatar's Energy Minister Mohammed bin Saleh al-Sada and OPEC Secretary General Mohammad Barkindo address a news conference after a meeting of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna, Austria, November 30, 2016.

OPEC has upgraded its world oil demand forecast to 1.27 million barrels per day, an upwards revision of 10,000 barrels per day.

The forecasts - in OPEC's new monthly oil report on Wednesday - come as OPEC countries cut oil output in March more than anticipated. Compliance in the deal, which was initiated to clear a supply glut and boost prices, averaged 104 percent, according to a Reuters calculation based on production figures published by OPEC.

The cut in production comes amid fluctuating oil prices. The OPEC Reference Basket (OBR) fell 5.7 percent in March to $50.32 per barrel. However, the OBR, which refers to weighted average prices for oil produced by OPEC members, saw a sharp increase in prices for both the quarter and the year, pointing to a victory for the OPEC production limits initiated in 2016.