Oil prices hit their lowest in 11 days on Tuesday on news that USA shale oil output in May is expected to post the biggest monthly increase in more than two years, fuelling concerns that US production growth is undermining efforts to cut oversupply.
Latest data by the Energy Information Administration showed US output rose to 9.25 million barrels a day last week, the highest level since August 2015.
Gasoline stocks also posted a counter-seasonal build of 1.4 million barrels.
On Wednesday, the Organization of the Petroleum Exporting Countries' Secretary-General Mohammad Barkindo called on all non-OPEC producers who aren't part of the output-cut agreement to join the pact, according to a news report from Platts.
Since the start of the year, oil prices have risen roughly around 20% after OPEC and other heavyweights such as Russian Federation agreed to slash their output by almost 1.8 million barrels a day.
"At 532.3 million barrels, United States crude oil inventories are near the upper limit of the average range for this time of year".
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"The glaring rise in USA gasoline refined product inventories, in combination with persistent lower-48 production growth, keeps us cautious on oil prices", said Chris Kettenmann, chief energy strategist at Macro Risk Advisors LLC in NY. On Thursday, before the break closed most major markets, they settled up 3 cents at $55.89 a barrel. West Texas Intermediate was down 0.2 percent to $50.75 per barrel.
Additionally, Iran added fuel to hopes that OPEC and non-OPEC oil producers could extend their output cuts beyond the initial six-month agreement. Brent crude has gained about 19 percent since OPEC chose to pare output, and the benchmark grade was 24 cents higher at $55.13 a barrel at 11:59 a.m.in London.
Retail sales in the USA fell for a second straight month in March and consumer prices dropped for the first time in just over a year, official data showed on Friday.
The latest Chinese data recorded increased gasoline exports with a 2.5% annual gain for March to the highest level since April 2014.
Thus, Saudi Arabia plans to develop 30 projects in the field of solar and wind energy to increase electricity production and reduce oil consumption, according to the Minister of Energy, Industry and Mineral Resources of Khalid al-Falih.
OPEC's compliance with the pledged cuts improved to 104 percent in March from 90 percent in February, while the rate for non-OPEC producers in the accord rose to 64 percent from 38 percent over the same two months, the International Energy Agency said in an April 13 report.
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