US shale production in May is likely to post the biggest monthly gain in more than two years, government data showed on Monday, as producers step up the pace of drilling with oil prices holding above $50 a barrel.
Traders said that the slight gains came on the back of a reduction in commercial U.S. crude stocks, which fell by 1 million barrels last week to 532.34 million barrels, according to the U.S. Energy Information Administration (EIA).
Brent crude futures LCOc1 traded at $54.92 per barrel, while the US West Texas Intermediate (WTI) crude futures CLc1 also remained nearly unchanged from the last close at $52.43 a barrel, reported Reuters.
But Barkindo said at a conference in Abu Dhabi that the cartel and other top nonmember producers are committed to keeping global crude inventories below the five-year average. USA output, almost 55% of which comes from its seven major shale plays, averaged 9.25 million b/d in the week ended April 14, up almost half a million barrels a day versus the end of 2016, and around 820,000 b/d higher than the recent trough of July 2016, according to the latest EIA data.
Crude traders and investors in Asia also had their first chance to assess a 13th consecutive increase in the rig count by drillers of U.S. shale oil.
Olmstead Easter egg hunt still fruitful despite difficulties
Meanwhile in Boomtown, this was the first year that Cabela's was open for Easter, so they wanted to do something special. Inside the church gate, hundreds of kids and parents walked through for a massive Easter egg hunt .
Crude oil and gasoline prices usually move together.
On the NYME, the May delivery for West Texas Intermediate dropped by 24 cents to reach $52.41 per barrel.
While Iran fueled hopes that OPEC and non-OPEC oil producers could extend their output cuts beyond the six-month agreement, Saudi energy minister Khalid al-Falih said it was too early to discuss an extension. Total volume traded was in line with the 100-day average. They settled down 53 cents at $52.65 a barrel.
"The battle between the "sheiks and the shale oil producers" is far from decided. with all attempts by OPEC to achieve a lasting production deficit on the oil market being torpedoed by non-OPEC producers - first and foremost the USA", analysts at Commerzbank wrote.
Benchmark Brent crude futures were down 18 cents 55.71 at 0047 GMT. Opec exempted Nigeria and Libya a year ago from cutting production, due to their internal conflicts, while it agreed to let Iran pump an additional 90,000 barrels a day to reach output of about 3.8 million. The American Petroleum Institute late Tuesday reported a decline of 840,000 barrels, while analysts polled by S&P Global Platts forecast a fall of 50,000 barrels. USA crude futures were up 43 cents at.87 a barrel.
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