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Crude oil inventories fell by 5.2 million barrels

Oil prices extended gains after a larger-than-expected fall in U.S. crude inventories as refineries cut output.

According to Energy Information Administration, U.S. commercial crude inventories fell by 5.2 million barrels to a total of 522.5 in the week through May 5.

Stockpiles fell by 5.8 million barrels

The American Petroleum Institute had reported on Tuesday stockpiles fell by 5.8 million barrels last week, more than the 1.8 million-barrel slide analysts predicted.Global benchmark Brent crude was up $1.57, or 3.2 percent, at $50.30 a barrel by 12:36 p.m. ET (1636 GMT). U.S. light crude oil was $1.60, or 3.5 percent, higher at $47.48 a barrel.

U.S. gasoline futures were up 3.3 percent

Gasoline demand, which has been soft in recent weeks, also rebounded strongly. U.S. gasoline futures were up 3.3 percent after the report. EIA reported gasoline stocks fell by 150,000 barrels, compared with analysts' expectations in a Reuters poll for a 538,000 barrel-drop. API had reported a build in U.S. gasoline stockpiles on Tuesday.Distillate stockpiles, which include diesel and heating oil, fell by 1.6 million barrels, versus expectations for a 1 million-barrel decline, the EIA data showed.

Saudi Arabia also limited oil production

Saudi Arabia's energy minister, Khalid al-Falih, said on Monday he expected OPEC to agree to extend an agreement to limit oil production to the end of the year or possibly longer.State-owned Saudi Aramco will reduce oil supplies to Asian customers by about 7 million barrels next month, a source told Reuters, as part of the OPEC ' agreement to reduce production. Some data from tanker tracking firm ClipperData last week showed Saudi crude oil loadings for export fell by about 670,000 barrels a day in April from October.

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