Oil prices steadied on Tuesday as lower production by Russia and major exporters of the Organization of the Petroleum Exporting Countries (OPEC) balanced news of higher output in the US, Canada and Libya.
Benchmark Brent crude oil was down 10 cents at $51.42 a barrel by 1345 GMT. The futures contract hit a one-month low of $50.45 last week after the restart of two Libyan oilfields. US light crude was 20 cents lower at $48.64.
OPEC and other producers including Russia have agreed to cut output by 1.8 million barrels per day (bpd) in the first half of 2017 to try to reduce a global glut.
OPEC oil output fell for a fourth straight month in April, a Reuters survey showed on Tuesday, dropping to 31.97 million bpd as Nigeria and Libya pumped less crude.
Russian oil production fell slightly last month, almost hitting its output target under the deal with OPEC, Energy Ministry data showed on Tuesday.
OPEC and other producers plan to meet on May 25 and are widely expected to keep output limits for the rest of the year.
BP Chief Financial Officer (CFO) Brian Gilvary told Reuters on Tuesday that oil inventories would keep falling this year.
“If the OPEC cuts get rolled into the second half of the year, that will underpin oil prices,” Gilvary said. “We are managing things around $50-$55 a barrel. That is probably the range we would expect for the rest of the year.”
But oil market sentiment is fragile. Libya’s National Oil Company said on Monday production had risen above 760,000 bpd to its highest since December 2014, with plans to keep boosting production.
US crude output is at its highest since August 2015, while the Syncrude Canada oil sands project has started shipping crude from its Mildred Lake upgrader again after cutting production due to a fire in March.
US crude inventories are expected to mark a fourth straight week of declines from a record high hit at the end of March, but stocks are still seen about 10 percent above year-end levels, according to Reuters calculations.

Source: Arab News