Oil rebounds above $50 on latest US stockpile figures

The Organization of the Petroleum Exporting Countries (OPEC) members chose to reduce output by 1.8 million barrels per day to rebalance the oil market for the first six months of this year.

"As long as you've got those builds in gasoline, it is going to be hard for crude oil to rally", said Olivier Jakob, energy market strategist at Petromatrix in Zug, Switzerland.

Saudi Arabia's oil minister said he is confident that an agreement by oil producers to curb output and shrink a market glut will be extended into the second half of the year and possibly beyond.

Global benchmark Brent futures were up 25 cents, or 0.5 percent, at $48.98 a barrel at 0200 GMT.

The EIA raised its USA oil production forecast to an average of 9.3 million barrels per a day (bpd) in 2017 and 10 million bpd in 2018 while it lowered its projection for average oil prices in 2017 to $52.60 a barrel for Brent and $50.68 for WTI.

Moves in refined product inventories also impact crude oil (FENY) (XES) (RYE) (IEZ) prices.

July brent crude futures on London's ICE Futures exchange picked up 55 cents, or 1.1%, to $50.77 a barrel.

Oil major Saudi Aramco has told Asian refiners it will reduce supplies by about seven million barrels in June.

U.S. West Texas Intermediate (WTI) crude oil futures CLc1 were trading at $47.46 per barrel, up 13 cents, or 0.3 percent from the last settlement.

While decreased stocks and an improving global economy were supporting oil demand, "continued rebalancing in the oil market by year-end will require the collective efforts of all oil producers to increase market stability", OPEC said.

However, efforts of OPEC to reduce global oil inventories have been undermined by a surge in U.S. drilling, which has knocked more than 10 per cent off the price of oil in the last month.

"We are discussing different options and consider that an extension for a longer period will help to speed up the return of the markets to a healthier condition".

"Chief among (the) oil market's worries is that the renewed rise in USA oil production is reducing the speed at which the supply surplus is being eroded", Fawad Razaqzada, market analyst at Forex.com, said in a note.

Due to the higher supply expected from outside producers, OPEC trimmed forecast demand for its crude in 2017 to 31.92 million bpd, down 300,000 bpd from the previous forecast and not far from current production.

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