Meanwhile, with regards to last week's crude price drop of 7 percent, Tim Evans, energy futures specialist for Citi Futures, said in a note that his firm believes an OPEC cutback extension is likely, "but the market seems to be attributing last week's decline to the lack of a firm agreement". The OPEC committee concluded that a six-month renewal to the output-cut deal is needed, delegates with knowledge of the matter said. Money managers boosted wagers that USA oil futures would increase in the week to April 18, government data showed.
The renewed concerns of pick-ups in U.S production came after the week of April 21, in which US companies added oil rigs for a 14th week in a row, to 688 rigs total.
Brent crude futures LCOc1 rose 35 cents to touch $52.31 per barrel, while the US West Texas Intermediate (WTI) crude oil futures CLc1 increased 32 cents and traded at $49.84 a barrel, reported Reuters.
Opec and its allies have failed after three months of cuts to meet their goal of reducing global supplies below the five-year historical average, Al-Falih said.
Floating storage is seen as a clear indicator of oversupplied markets.
Saudi Arabia and Kuwait, favour extending their production-limiting deal with non-member producers into the second half of the year.
Oil had retreated below US$50 (RM219) a barrel amid concern rising USA crude production would offset efforts by Opec to trim a global glut, but has rallied by 1.2 per cent today. Equities gained and the dollar weakened against the euro as a snap poll by Ipsos showed centrist Emmanuel Macron would win the second round of voting in France.
WTI for June delivery rose as much as $0.60 to $50.22/bbl on the NYME, and was at $50.09 in London. It was also the lowest close since March 28.
Russian Federation said on Monday that its oil output could climb to the highest rate in 30 years if OPEC and non-OPEC producers do not extend a supply reduction deal beyond June 30.
"I would say it's a situation where the spec community is not willing to ride that long position into the weekend and the French election", he said.