Oil Holds Gains as U.S. Crude Stockpiles Seen Extending Decline

The Organization of the Petroleum Exporting Countries and non-OPEC producers, such as Russian Federation, decided late a year ago on an output cut of 1.8 million barrels per day (bpd) to reduce global oil inventories.

Higher crude output from the United States should limit any upside to global oil prices through the end of 2018, the US government said on Tuesday. While US shale output growth and the shutdown of refineries for maintenance have slowed the impact of cuts by OPEC and its partners, the Saudi minister said he's confident the global oil market will soon rebalance and return to a "healthy state".

LONDON, May 10 (Reuters) - Oil prices rose on Wednesday after a larger-than-expected fall in US crude inventories but failed to recoup last week's losses due to concerns about rising output from the United States, Libya and Nigeria.

OPEC will decide formally whether to extend the cuts when its ministers meet in Vienna on May 25. Saudi Aramco will reduce supplies to Asian customers by about 7 million barrels in June.

NEW YORK, May 11 (Reuters) - Oil prices rose more than 1 percent on Thursday, as large drawdowns in USA inventories and growing support for continued OPEC output cuts boosted confidence that a seemingly insurmountable glut might finally diminish. For the year to date, the price of a barrel of WTI is down 18.7% and the price of Brent crude is down 16.8% per barrel.

Brent LCOc1 was 30 cents higher at $50.52 a barrel by 0715 GMT.

Crude oil prices drifted lower on Tuesday as investors continued to express concerns over slowing demand and the rise in us crude output.

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Oil prices had already been trading higher on a report that Saudi Arabia was cutting exports to the key Asian market and on earlier industry data pointing to a sharp decline in weekly US inventories.

OPEC monthly report also found that world oil supply growth for the year was increased by 37,000 barrels per day with supply to now average 58.3 million barrels per day.

Russian Federation said yesterday it was discussing prolonging cuts with other producers beyond 2017, without giving a clear timeline.

A third source said an extension of up to one year could be an option.

The 13-country OPEC is curbing its output by about 1.2 million bpd from January 1 for six months, the first reduction in eight years.

The IEA now sees global oil demand growth of 1.3 million barrels a day, lower than the growth of 1.6 million seen in 2016 and the 2 million recorded in 2015.

Production rose, however, and gasoline demand over the last four weeks was 2.5 percent lower than at the same time period a year ago.

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