Oil falls to two-week low as gasoline supply rises, dollar gains

Crude oil slid lower on Monday on signs that the United States is continuing to add output, largely counteracting strong economic growth in China and OPEC efforts to cut production.

US crude oil production reached 9.24 million barrels per day (bpd), according to the latest Energy Information Administration data, making it the world's third-largest producer after Russian Federation and Saudi Arabia.

US gasoline stocks posted a counter-seasonal build of 1.5 million barrels, despite heavier refining activity.

U.S. West Texas Intermediate (WTI) crude futures likewise retreated 47 cents at $52.71 per barrel.

Earlier Wednesday, OPEC's Secretary-General Mohammad Barkindo said that the cartel and other major oil producers are moving closer to end the worlds's glut oil. Last November, OPEC countries, and other 11 participating non-OPEC countries agreed to slash production by 1.8 million barrels per day by the first half of 2016.

"Crude oil prices were slightly weaker as the focus turned back to US inventories and output", ANZ bank said on Wednesday. On the other hand, the United Arab Emirates will reduce output by 139,000 barrels a day, Kuwait by 131,000 barrels a day and non-OPEC member Russian Federation will cut by as much as 300,000 barrels per day.

Oil had rallied above $53 a barrel after some members of the Organization of Petroleum Exporting Countries voiced support for prolonging cuts past June, but rising USA output is undermining the effort to trim a global glut.

Global benchmark Brent crude futures swooned as low as $54.61, the lowest since April 7, then settled down 47 cents at $54.89 a barrel.

The benchmark for USA oil had also risen for three straight weeks through Thursday, before the Easter break.

Saudi refinery intake jumped to 2.673 million bpd in February from 2.127 million bpd in January, to a record high since JODI started publishing data in January 2002.

Oil prices fell in thin trade on Tuesday after the Easter holiday break shut many markets for as long as four days and as a US government report indicated rising production.

Data from the American Petroleum Institute (API) on Tuesday showed that US markets remained bloated.

A joint committee of ministers from OPEC and non-OPEC oil producers will meet in late April to present its recommendation on the fate of the pact.

This week's draw in crude oil inventories is the seventh draw in the last sixteen weeks, using API data, with the API still reporting an overall hefty build over the previous 15 weeks of roughly 37.1 million barrels.

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