Oil prices rebound after Kuwait supports output cut extension
Oil prices have increased after previous day's losses as Kuwait supported an extension to OPEC's output cut to reduce crude supplies beyond the first six months of the year.
Brent crude futures gained 41 cents and traded at $53.34 per barrel, while the US West Texas Intermediate (WTI) crude futures increased by 32 cents to touch $50.76, reported Reuters.
Oil traders said that the gain in crude prices follows the comments from Saudi Arabia and Kuwait, which expressed their support to extend the output cut deal beyond June.
OPEC members and other producers decided to curb oil production by 1.8 million barrels a day to revive falling crude prices.
The US Energy Information Administration said that oil prices also gained support following a fall in commercial crude stocks in US that declined by one million barrels last week to 532.34 million barrels.
The global oil market still continues to remain bloated as Saudi Arabian Energy Minister Khalid al-Falih was reported by Saudi-owned al-Hayat newspaper as saying that traders are selling supplies out of tanker storage that has kept the supplies elevated.
China's National Bureau of Statistics data revealed that the country’s gasoline output increased by 2.5% year on year to 11.24 million tonnes.
The increase added fuel to the already well-supplied Asian market.