Crude oil rises ahead of Asia trade on Friday on potential OPEC supply cut

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Crude oil futures headed higher into Asia on Friday, with the market watching for whether Saudi Arabia will convince OPEC and allies to trim 1.4 million barrels per day (bpd), or 1.5 percent of global supply, from its current production levels.

ICE Brent was last quoted at US$56.56 a barrel, up 0.85 percent in post settlement trade, while NYMEX West Texas Intermediate gained 0.55 percent to US$56.56. Brent settled up 0.76 percent at US$66.62 a barrel and WTI ended up 0.37 percent to US$56.46 a barrel.

Saudi Arabia is reportedly furious the U.S. granted waivers around U.S. sanctions on Iran to key importers such as China and India as it also added more oil to the market to offset the expected drop in exports from Tehran.

But oil prices have been pressured recently, in part on supply concerns.

U.S. crude oil inventories leaped 10.3 million barrels last week to 442.1 million barrels, the highest level since early December 2017, the Energy Information Administration said on Thursday. At the same time, domestic crude output jumped 100,000 bpd to 11.7 million bpd.

Gasoline stocks fell 1.4 million barrels, EIA said, mostly in line with an expected decline of 1.5 million barrels, and distillates fell 3.6 million barrels, compared with an expected decline of 1.7 million barrels.