Oil prices pared gains around midday on Monday after earlier rising nearly 2 percent on signs of inventory declines in the United States and news that Saudi Arabia will limit exports in July.
Saudi Arabia, the world's top oil exporter, will cut crude allocations to Asia in July to a total of about 300,000 barrels per day (bpd), deeper than in June, sources told Reuters. One source said volumes to the United States would be cut by about 35 percent in July.
Data from market intelligence firm Genscape estimating a draw of more than 1.8 million barrels at the Cushing, Oklahoma delivery point for U.S. crude futures last week added to the bullish sentiment, said traders who saw the data.
U.S. West Texas Intermediate (WTI) crude futures ended Monday's session 25 cents higher to $46.08 per barrel , after earlier rising as high as $46.71. Brent crude futures was up 13 cents to $48.28 per barrel by 2:39 p.m. ET (1839 GMT), off a session high of $49.15.