"In contrast, oil supply in 2017 was revised up by 0.36 million barrels per day to average 58.25 million barrels per day - representing year-on-year growth of 0.95 million barrels per day, following changes in all quarters, mostly in the United States, based on United States actual production data from February and new forecasts for crude oil output".
"The rally in crude oil prices that started after news that OPEC was ready to prolong its production cut agreement stalled overnight, as the market awaits evidence of rebalancing", ANZ bank said on Wednesday.
According to the report, commercial inventories decreased for a second straight month in March, by 32.9 million barrels to 3.025 billion barrels.
With each barrel of Iraq's Basra Heavy oil trading at roughly $2.85 less than a barrel of Saudi Arabia's Arab Heavy mix when the deals were done, Indian importers were able to realise a substantial cost-savings by making the switch, without much impact on product output.
Brent rose 81 cents to $52.45 a barrel.Traders and investors have grown increasingly concerned about a supply glut several months into the deal between the Organization of the Petroleum Exporting Countries and non-OPEC members like Russian Federation to clip production by 1.8 million barrels per day. Wednesday's report also showed that USA crude imports climbed 577K barrels per day last week, whereas exports advanced 400K barrels per day.
Meanwhile, four of the 11 non-OPEC nations that joined supply cuts - Russia, Azerbaijan, Oman and South Sudan - have said they would also support extending the curbs. US West Texas Intermediate (WTI) crude futures were at $48.88, down 19 cents, or 0.4 per cent.More news: Fallout over Comey memo, Trump's intel disclosures persists
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The sharp drop in Brent prices last week does not signal an end to an oil price recovery or an Opec failure to rebalance the global oil market, said BofAML's Global Energy Weekly report by Francisco Blanch and its Global Commodity Research team.
But the International Energy Agency said Tuesday that just extending the cuts wouldn't be enough to bring markets in balance. The curbs, in place since the beginning of the year, have failed to sustain higher prices as US competitors have increased supplies.
OPEC meets on 25 May to review output policy.
Today's oil price structure gives US shale drillers another rock to fling at the market's goliath, OPEC, according to Jeff Currie, head of commodities research at Goldman Sachs. Still, most U.S. producers remain underhedged in 2018 and USA rig count increases should slow.
At its meeting, OPEC is expected to renew its decision to reduce production by more than 1 million b/d through 2017.