Oil prices edged higher on Thursday after the International Energy Agency (IEA) said the market was nearing balance, while U.S. data showing higher production kept gains in check.
OPEC cut oil output in March by more than pledged under a supply reduction deal and said oil inventories had fallen in February, suggesting that its effort to clear a supply glut that has weighed on world oil prices is succeeding.
Crude oil edged back from a five-week high on Tuesday, as rising U.S. shale oil production weighed against support from tensions in the Middle East and production cuts in OPEC and other states.
Oil rose towards $56 a barrel on Monday, supported by another shutdown at Libya's largest oilfield, tension over Syria following the U.S. missile strike and signs that an OPEC-led supply cut is helping to clear excess supplies.
The shale oil boom has transformed the U.S. and global energy sector to such an extent that it has upended traditional supply dynamics and made forecasts far more polarized.
The stream of U.S. energy companies going public at the start of 2017 has dried up on concerns over the future direction of oil prices, but private buyers seeking mergers and acquisitions are ready to take advantage of the volatility to secure cheap deals.
Oil prices hit a one-month high on Friday after the United States fired missiles at a Syrian government airbase, sending shockwaves through global markets and raising concerns that the conflict could spread in the oil-rich region.
