By Julia Simon
NEW YORK (Reuters) - Oil prices were little changed on Friday in a see-saw session, retreating from session highs and headed for weekly declines on lingering questions about whether OPEC will extend output cuts at its May meeting and whether it will reduce a global crude glut enough to boost prices.
U.S. oil prices have lost ground in eight of the last 11 sessions. On Thursday, prices fell sharply on news that oilfields in Libya resumed production.
Most analysts polled by Reuters expect the deal between the Organization of the Petroleum Exporting Countries and non-OPEC producers struck in December to be extended to the end of this year, but concerns remain about increased U.S. production.
U.S. light crude (CLc1) rose 19 cents to $49.16 a barrel as of 1:08 p.m. EDT (1708 GMT), off the day's high of $49.76. Benchmark Brent crude (LCOc1) futures were up 16 cents to $51.60 a barrel. Both benchmarks were headed for weekly and monthly losses.
Non-OPEC member Russia said it would meet its end-April target of cutting output by 300,000 barrels per day (bpd), which supported crude prices. Russia said it would define its position on whether to extend its cuts by May 24, a day before OPEC meets in Vienna.
Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, said the Russia output cuts are "probably not enough because in the end there are only a few months left in the deal."
U.S. crude is down 0.8 percent on the week and 2.7 percent on the month. Brent has lost 0.6 percent on the week and 2.2 percent on the month.
U.S. crude production for February rose 193,000 barrels per day to 9.03 million bpd. Weekly figures show production reaching levels not seen since August 2015.
“We’ve seen pretty meaningful room to ramp up production," Haworth said. Shale producers have "been well able to hedge out price risk for further production."
U.S. rig counts rose by nine to 697 total rigs on the week, according to Baker Hughes data, marking 15 straight weeks of increases.
An uptick in prices since the output deal has increased profits at U.S. oil majors ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX). Both reported better-than-expected results, and both have plans to increase shale drilling. Jeff Woodbury, Exxon's head of investor relations, did say high inventories and new supply "indicates a need to be cautious."
U.S. President Donald Trump signed an order to allow offshore oil and gas drilling in more locations, though these projects tend to take years. Offshore lease activity is now near five-year lows.
A Reuters poll showed analysts expect oil supply and demand to balance by the end of this year, if producing countries extend the output cut. Most analysts cut their average yearly price forecasts, with Brent expected to average $57.04 a barrel, compared with last month's forecast of $57.25.