Nigeria's crude oil production increases by 273600 bpd

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Brent crude was down 41 cents, or 0.8 percent, from the last close at $51.24 per barrel at 0442 GMT.

US crude oil inventories rose by 882,000 barrels in the week ending May 12 to 523.4 million, compared with analyst expectations for a decrease of 2.4 million barrels, data from industry group the American Petroleum Institute (API) showed on Tuesday. The global Brent oil benchmark was up 3% to $52.33 per barrel this morning, and the U.S. West Texas Intermediate price was up more than 3% to $49.36.

Specifically, the country's crude oil production increased from 1.210 million bpd recorded in March to1.484 million bpd in April.

UBS oil analyst Giovanni Staunovo said he saw a 60 percent probability of OPEC extending output cuts.

That defied expectations of analysts who estimated a draw in the stockpiles of 2.4 MMbbl, according to a Reuters survey.

Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce the output by 558,000 barrels per day starting from January 1, 2017 for six months, extendable for another six months.

"The agreement by OPEC to extend cuts into 2018 is critical", said AB Bernstein in a note.

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OPEC is increasingly expected to extend the current deal to cut production at its meeting next week amid growing support for a deal extension from OPEC nations such as Kuwait, Iraq, Oman and Venezuela.

Organisation of the Petroleum Exporting Countries (OPEC), continued to reduce production in April, but output from Africa's top exporter - Nigeria, increased by 273,600 barrels per day (bpd).

"The oil rally has paused and whether it can resume depends on today's EIA inventory report", said Ole Hansen, head of commodity strategy at Saxo Bank.

"This statement shows the commitment by OPEC and major non-OPEC oil producers to bringing stability to the oil market, in which is essential to have security of supply in coming years", said one of the sources.

North Sea oil output, generally seen in terminal decline, is expected to jump by a net 400 Mbbl/d in the next two years with new projects and greater efficiencies.

The extension would come as global stocks remain stubbornly high, in part because United States production has climbed 10% since mid-2016 to 9.3 million bpd, not far off that of top producers Russian Federation and Saudi Arabia.

Shipping data in Thomson Reuters Eikon shows that US crude exports to Asia have soared from a handful of tankers a quarter throughout 2015 and 2016 to 10 tankers in the first quarter of 2017 and that figure is expected to rise.

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