U.S. revises up global petroleum supply forecasts

OPEC to U.S. Please don't pump so much oil!More

Based on the lower US inventories and the expectation of an extended production cut, this week has seen the market stabilize, including a recovery of Brent back above $50 per barrel, following steep price falls last week.

According to OPEC's latest Monthly Oil Market Report for May released on Thursday, Nigeria's output was put at 1.484 million bpd for April, from 1.21 million bpd in March, which was based on direct communication.

The head of oil analysis for the IEA, Neil Atkinson said it was starting to become clear "that if the objective of the OPEC cuts was to flip the market from surplus into deficit, that is now slowly beginning to happen".

The fall in WTI 2018 swap prices has made it "unattractive for most US shale oil producers to hedge", Jesper Dannesboe, a London-based commodity strategist for SocGen, wrote in Friday's report.

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The head of commodities at Goldman Sachs, Jeff Currie told the Platts London conference that the market is heading towards a supply deficit and he sees stronger prices in the long term. Saudi Arabia, OPEC's de facto leader, has said it expects an extension to the end of 2017 or possibly beyond.

Almost three years after the cyclical peak in oil prices, it should be clear that the "sheikhs vs. shale" struggle will never be a battle to the death.

The Saudis convinced OPEC to cut production to raise prices in November, but OPEC countries can't cope with low crude prices and already appear to be cheating to balance their national budgets.

A weekly report by Baker Hughes (BHI.N) monitoring US rigs drilling for new production is due on Friday.

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Oil prices fell modestly on Friday, pulling back after two days of gains, as concern over USA production took some of the shine out of optimistic signals from OPEC this week about output cuts.

OPEC has been urging other producers to join the supply pact and, together with participating non-member countries, meets to set policy on May 25 in Vienna. US light crude CLc1 was up 1 cent at $47.84.

"Higher oil production from the United States, along with rising oil output from Canada and Brazil, is expected to curb upward pressure on global oil prices through the end of 2018", Howard Gruenspecht, acting administration at the EIA said in a statement Tuesday.

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