Oil futures climb 1 percent after USA stockpile draw

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On Friday, Igor Sechin, chief of Russia's largest oil producer, Rosneft, said us oil producers could add up to 1.5 million bpd to world oil output next year.

USA crude production last week already stood almost 500,000 barrels per day (bpd) above the year-earlier level, straining OPEC's efforts to drain a global overhang. CPC calculates its weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude.

Prices came under renewed pressure during European trading with fresh consideration of President Trump's overnight decision to withdraw the USA from the 2015 Paris Climate Accord.

"Greater OPEC restraint will help to shore up prices, but we do not expect it to be enough to push prices above $55 per barrel on average in 2017-18", said Cailin Birch, an analyst at the Economist Intelligence Unit. "We made a deal", he added.

Oil prices are down around 10 percent since the extension, and OPEC officials have since suggested they may deepen the cuts.

Speaking alongside his Russian counterpart Alexander Novak in Moscow last week, Falih said he saw their new cooperation lasting after the current output agreement expires.

The March production figure is about 0.5 percent lower than the department's earlier estimate of 9.15 million barrels a day for the same month, a sign that US output could come in lower than the agency has forecast this year.

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U.S. West Texas Intermediate crude CLc1 futures fell 95 cents to $47.41 per barrel.

Oil took a beating last week by dropping more than 4%, the largest weekly decline since early May. Based on proprietary and detailed well level data, Rystad Energy sees current USA production bouncing back twice as fast as it dropped, reaching 9.4 million barrels on May 31st.

US crude output rose by 22,000 barrels a day to 9.34 million, according to a report Thursday from the EIA. "Why wouldn't they ramp up production when producers like the US have an open invite to do as they please?" Rising gasoline demand has resulted in dropping gasoline inventories across the country, according to the latest Energy Information Administration's (EIA) report.

According to the EIA, crude inventories in the US market in the week to May 26 dropped by 6.4 million barrels per day to 509.9 million barrels, way more than the market forecast of a 4.4 million-barrel decline.

Benchmark Brent crude futures LCOc1 were trading at $49.67 a barrel at 0849 GMT, down 96 cents from the previous close.

"The worry is that you have rising output in the US and that's going to offset cuts", said Gene McGillian, manager of market research at Tradition Energy in Stamford, Conn.

Rising output from OPEC members, Nigeria and Libya, which were exempted from the output reduction deal, is also undercutting attempts to limit production.

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