Latest data from the Energy Information Administration showed US output rose to 9.25 million barrels a day last week, the highest level since August 2015.
USA crude inventories probably shrank by 1.7 million barrels last week, according to a Bloomberg survey before an EIA report Wednesday.
May West Texas Intermediate crude shed 24 cents, or 0.5%, to settle at USD52.41 a barrel.
On Wednesday, the Organization of the Petroleum Exporting Countries' Secretary-General Mohammad Barkindo called on all non-OPEC producers who aren't part of the output-cut agreement to join the pact, according to a news report from Platts.
OPEC and non-OPEC producers agreed in December 2016 to cut supplies for six months, helping lift oil prices to about $55 a barrel after a two-year slump.
"The net result is that global stocks might have marginally increased in the first quarter, versus an implied draw of about 0.2 million barrels per day", the IEA said.
Crude oil and gasoline prices usually move together.
Crude oil prices slipped one per cent on Monday in subdued trading after a long Easter holiday weekend, on news of rising USA shale production and profit-taking following three straight weeks of gains.
US says raised deep concerns with Turkey over air strikes
The PKK has led an insurgency in southeast Turkey since 1984, and is considered a terror organization by Turkey and its allies. Sinjar" earlier in the day, resulting in five deaths, according to a statement from the Ministry of Peshmerga Affairs.
The Organization of the Petroleum Exporting Countries, which includes major oil producers like Saudi Arabia, Iran and Venezuela, agreed past year to curb output and help stabilize prices.
OPEC members Saudi Arabia and Kuwait signalled that the Organization of the Petroleum Exporting Countries and other producers, including Russian Federation, would likely extend their oil output cut beyond June.
Brent crude futures LCOc1, the global benchmark for oil, were at $54.84 per barrel at 0059 GMT, down 5 cents from their last close. The fall in gasoline inventories could support gasoline and crude oil prices.
The market will watch Wednesday morning to see if USA government data confirms the API report. Russian Federation and 10 other non-OPEC producers agreed to cut half as much.The accord has lifted oil prices, which are near $55 a barrel. WTI si now trading at $51.2 per barrel and Brent at $2.1 per barrel premium to WTI.
If that is right, May will have the biggest monthly increase since February 2015 and the highest monthly production level since November 2015.
This is while the U.S. total motor gasoline imports, including both finished gasoline and gasoline blending components, last week averaged 843,000 barrels per day, according to the report.
Zanganeh, in a press conference that was held in Iran's energy hub of Assaluyeh, described as "historic" the cooperation between OPEC and non-OPEC producers over their output cut agreement.
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