Saudi Aramco cuts to Asia sees oil prices rally

Brent crude futures, the Global benchmark for oil prices, were at $50.33 per barrel at 0039 GMT on Thursday, up 11 cents, or 0.2 percent, from their last close.

OPEC monthly report also found that world oil supply growth for the year was increased by 37,000 barrels per day with supply to now average 58.3 million barrels per day.

Gasoline demand also perked, as USA gasoline futures were up 2.4% after the report.

That was the lowest close for both futures since May 4 and the second lowest since November 29 - the day before the Organisation of the Petroleum Exporting Countries (OPEC) agreed to cut production during the first half of 2017.

Exchange-traded funds linked to oil prices, continued to climb today as crude prices remained on track to end the week in the green amid data showing that the USA crude glut is shrinking and OPEC's production cuts are making a dent in global supplies. Russian Federation also said it was discussing prolonging cuts with other producers beyond 2017.

The report indicated that OPEC's objective to reduce inventories to their five-year average remains some way off.

But probably to bring back confidence in the oil market, Saudi Arabia and Russian Federation - the two pillars of OPEC and non-OPEC oil producers - hinted at an extension of output cuts in 2018. They fell 1.2 percent on Tuesday.

OPEC is curbing its output by about 1.2 million barrels per day (bpd) from January 1 for six months, the first reduction in eight years, to clear excess supply.

Brent, against which half of the world's oil is priced, rose by $1.53 to $50.26 per barrel as of 6:10pm Nigerian time, while the US West Texas Intermediate increased by $1.57 to $47.45 per barrel.

The kingdom will cut supplies by a little more than 3 million barrels for India and slightly less than 1 million barrels for Japan, the source with knowledge of the nominations said.

Volatility in crude oil prices impacts oil and gas producers' earnings like Noble Energy (NBL), Northern Oil & Gas (NOG), Denbury Resources (DNR), and Cobalt International Energy (CIE).

"That is exactly what we got yesterday as the report showed falling stocks of oil and fuel combined with lower imports", he said. "The answer is absolutely yes because we are going into a deficit market", Currie said.

On Monday, Saudi Arabia's oil minister Khalid al-Falih said he expected the output deal to be extended to the end of the year or possibly longer.

Crude inventories fell 5.2-million barrels in the week to May 5, the US Energy Information Administration said.

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