Crude oil rises on tightening supplies, West Asian tensions

Crude oil prices were flat to slightly lower in early Thursday trading as consumer demand issues balance against a large draw in oil inventories.

Futures slumped as much as 1.8 percent in NY while Brent crude in London slid below $50 a barrel.

Brent crude, the global oil benchmark, fell 1.8% to $49.71 a barrel on London's ICE Futures exchange.

NEW YORK, June 2 (Reuters) - Crude fell more than 1 percent on Friday, heading for a second straight week of losses, on worries that U.S. President Donald Trump's decision to withdraw from an worldwide climate accord will spur further domestic production and contribute to a persistent global oversupply.

The U.S. Energy Information Administration (EIA) reports its official figures for U.S. stockpiles at 1500 GMT on Thursday. Last year, between Memorial Day and Labor Day, the peak USA driving season, inventories of reformulated gasoline fell not at all compared to the five-year average.

That followed the American Petroleum Institute saying us crude supplies fell 8.7 million barrels last week by its count.

"A decrease in production under an agreement between OPEC and non-OPEC could largely be balanced out by an increase in USA shale oil production by the middle of 2018", Rosneft Oil Co. The United States is not participating in the self-imposed production cuts.

"The key question will be whether the next round of Opec cuts results in actual curtailment of exports since that will obviously be much more impactful for global prices", said Tamar Essner, senior director of energy and utilities at Nasdaq Corporate Solutions.

They quickly resumed their slide, however, which began when the Organization of the Petroleum Exporting Countries and other major producers agreed to extend ongoing production cuts by nine months on May 25.

"The start of the USA driving season. boosted confidence in the market that stockpiles would start to fall in coming weeks", ANZ bank said on Tuesday.

Gasoline demand during the USA summer driving season may support crude prices, analysts said.

Output from OPEC rose in May, the first monthly increase this year, a Reuters survey found.

Last week, the group along with Russian Federation - which isn't part of OPEC - made a decision to extend the agreement for a further nine months until March because the oil market had so far failed to rebalance. Higher supply from Nigeria and Libya, OPEC members exempt from a production-cutting deal, offset improved compliance by others.

"Investors continue to doubt the ability of OPEC to rebalance the oil market, with crude oil prices remaining under pressure amid further signs of rising United States oil production", ANZ bank said on Monday.

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