Industry group American Petroleum Institute reported that crude prices also gained support by the fall in USA inventory, a 5.8 million barrel decline.
By 11:12 a.m. (1512 GMT), U.S. crude futures were up $1.30, or 2.8 percent, at $47.18 a barrel, and Brent crude rose 2.5 percent, or $1.25, to $49.98 a barrel.
Crude inventories in the U.S. fell 5.2 million barrels in the week through May 5, the Energy Information Administration reported.
We bring down our forecasts to reflect the crude reality: stocks are still too high and USA supply is set to recover faster than we anticipated.
For the week ended May 3, the EIA said that crude oil inventories fell by 5.25 million barrels, which confounded expectations of a draw of 1.79 million barrels. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.
Ole Hansen, the head of commodity strategy at Saxo Bank, said in a semi-regular newsletter emailed to UPI that crude oil storage level declines came as US production trends were moderating.
The Energy Information Administration said domestic output will climb to a record 9.96 million barrels a day in 2018, up from 9.9 million barrels projected last month, according to the agency's monthly Short-Term Energy Outlook released Tuesday.
OPEC and other producers including Russian Federation have agreed to cut output by nearly 1.8 million barrels per day (bpd) during the first half of the year to try to reduce a global fuel glut.
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Opec is due to meet later this month in the hope of striking a second deal to secure a year of production cuts.
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He said that the most "credible options" for OPEC's next move would be to either agree on a deeper cut or let the deal collapse.
Despite an overall drop in OPEC crude production in April, Saudi Arabia's output increased, according to a monthly report from the cartel out Thursday.
Despite this, analysts warned that markets remained well supplied.
Equatorial Guinea, which is Africa's third largest oil producer, said it had support from Saudi Arabia to join Opec.
It's a very quiet couple of days on the company news front so yesterday I headed into the TipTV studio to chat to Zak Mir about the oil price and a quick look at the charts on some stocks I have been talking about lately.
Moreover, US shale production is now viable at $50 due to technological advancement from an earlier level of almost $70-$75, adding risk of growing supply pace from US as and when oil price crosses $50 mark, becoming key reason behind a enormous jump in US oil rigs in since May 2016. July brent crude futures on London's ICE Futures exchange picked up 55 cents, or 1.1%, to $50.77 a barrel.
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