Investing.com -- Crude oil futures rose modestly on Thursday extending recent gains, following Opec forecasts of a slowdown in U.S. production in the coming months.
On the New York Mercantile Exchange, WTI crude for May delivery gained 0.27 or 0.48% to $56.66, after reaching a daily-high of 57.37 earlier in the afternoon session. Crude prices moved up steadily through the trading session to keep a six-day winning streak intact.
On Wednesday, Texas light sweet futures gained nearly 6% as bullish supply data pushed prices to its highest level in four months.
Energy traders are intently focused on supply, as crude storage in the U.S. for the week ending April 10 reached 483.1 million barrels, the highest level in at least 80 years. In its monthly market watch released on Thursday, Opec said U.S. oil supply would increase to 13.65 millions barrels per day through the second quarter before flattening for the remainder of the year.
Separately, Opec said Saudi Arabia, its largest producer, increased output for March by 390,000 a day to 10.1 million bpd for the month. The spike in output pushed crude production to a near record-high and the highest by the oil-rich area since September, 2013.
The forecasts come on the heels of expectations for declining shale field production in the U.S. Earlier this week, the Energy Information Administration (EIA) forecasted that shale production next month will drop from its current level of 5.02 million barrels in April to 4.98 million bpd in May. Reductions in output in the Bakken formation in North Dakota and Eagle Ford in South Texas will spur the decline, according to the EIA.
The U.S. is dangerously close to reaching full storage capacity for crude, a development which could force producers to slow output. In early-April, Saudi oil minister Ali Al-Naimi said his nation would only slash oil production if other producers followed.
On the Intercontinental Exchange, brent crude for June delivery edged up 0.54 or 0.85% to 63.86 a barrel. The spread between the international and U.S. domestic benchmarks of crude stood at $7.20, up from 6.93 on Wednesday.
Geopolitical issues continued to weigh on crude, as Al Qaeda operatives reportedly gained control of a major airport in Yemen. Shiite-led Houthi rebels have battled Sunni Muslims from Saudi Arabia in the area since late March when a Houthi advance forced Yemen president Abed Rabbo Mansour Hadi to flee the country. Al Qaeda also reportedly captured a major seaport and oil terminal in Southern Yemen.