Investing.com - Oil prices were higher in European trading on Tuesday, extending a rebound off last week's four-month lows on the likelihood key producers could extend output cuts beyond an agreed-on June deadline.
The U.S. West Texas Intermediate crude June contract tacked on 24 cents, or around 0.5%, to $46.67 a barrel by 3:35AM ET (07:35GMT).
The U.S. benchmark settled higher for the second session in a row on Monday, bouncing back after touching its lowest since November 14 at $43.76 on Friday.
Elsewhere, Brent oil for July delivery on the ICE Futures Exchange in London rose 25 cents to $49.59 a barrel. The global benchmark sank to $46.64 on Friday, a level not seen since November 15.
OPEC and non-member oil producers are considering extending a global supply cut for nine months or more to help clear a supply glut, OPEC and industry sources said on Monday.
OPEC countries including core Gulf members are discussing internally whether an extension of nine months or longer is needed to give the market more time to rebalance, the sources said.
One industry source familiar with the talks said there had been discussions about extending curbs until the end of the first quarter of 2018, when crude demand should be seasonally weak.
In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8 million barrels per day between January and June, but so far the move has had little impact on inventory levels.
A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.
Crude has been under pressure in recent weeks amid fears that an ongoing rebound in U.S. shale production is derailing efforts by other major producers to rebalance global oil supply and demand.
The U.S. rig count rose for the 16th week in a row to the highest level since August 2015, implying that further gains in domestic production are ahead.
Investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products.
Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (20:30GMT) later on Tuesday. Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock drop of 1.8 million barrels.
Elsewhere on Nymex, gasoline futures for June inched up 0.3 cents, or nearly 0.3%, to $1.526 a gallon, while June heating oil added 0.9 cents to $1.465 a gallon.
Natural gas futures for June delivery advanced 2.4 cents to $3.196 per million British thermal units.