WTI Crude gripped by oversupply fears

Any increase in output in the United States, now the world's third-biggest oil producer, will likely put pressure on the Organization of the Petroleum Exporting Countries (OPEC) - which agreed to curb output at the end of a year ago - to cut production further.

According to data the single countries report to the Joint Organizations Data Initiative (JODI), Saudi Arabia's crude oil exports in February stood at 6.957 million barrels per day, the lowest volumes shipped in a month since May 2015 when exports were 6.935 million bpd.

OPEC and top nonmember producers reportedly will meet May 25 as they remain publicly undecided over whether to extend production cuts.

"While US inventories are going to decline, they are falling from a much higher level than they have over the past two years".

USA stockpiles and production have cast doubt on whether the cuts were enough.

"The market was overbought so these people are definitely booking profits at this point", Yawger said.Benchmark Brent crude futures ended the session 53 cents lower at $55.36 while U.S. West Texas Intermediate (WTI) crude futures settled down 53 cents at $52.65 a barrel.

US crude prices were down more than 1 percent at $52.32 a barrel in post-settlement trade after the American Petroleum Institute released its weekly data, indicating that crude stockpiles declined less than analysts had forecast.

Iran will probably be allowed to keep its oil production unchanged if OPEC decides to extend its six-month agreement on output cuts beyond June, Kuwaiti Oil Minister Issam Almarzooq said, adding that the Persian Gulf OPEC member has shown strong compliance with the OPEC supply cut deal. Gasoline inventories rose by 1.5 million barrels, though distillates fell, EIA said.

Gasoline futures for May delivery dropped 3 percent to $1.659 a gallon, the lowest close since March 28.

Gasoline stocks posted a counter-seasonal build of 1.5 million barrels, despite heavier refining activity. WTI si now trading at $51.2 per barrel and Brent at $2.1 per barrel premium to WTI.

Gasoline inventories rose 1.54 million barrels last week, surprising analysts surveyed by Bloomberg who projected the Energy Information Administration data would show a 2-million-barrel decline.

The same report also mentioned that Iranian oil minister Bijan Zanganeh said that most oil producers support an extension of output cuts by OPEC and non-OPEC countries including Iran.

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