Oil ebbs from 2015 high; OPEC reports jump in output

By Robert Gibbons

NEW YORK (Reuters) - Global oil prices edged back from a 2015 high on Thursday as traders took some profits from a weeks-long rally and the Organization of the Petroleum Exporting Countries reported a sudden surge in March production.

U.S. crude retraced some of the previous day's nearly 6 percent gains that followed government data showing the smallest weekly inventory build since the week ending Jan. 2, suggesting that months of oversupply may be starting to ease.

But on Thursday, OPEC said in its monthly report that its own output surged by 810,000 barrels per day (bpd) in March, even as low prices start to weigh on U.S. production.

Brent crude for June delivery fell 49 cents to $62.83 a barrel by 12:06 p.m. EDT (1606 GMT), after opening at $63.29, posting a front-month Brent peak price for the year.

The June contract settled the previous session at a $3 premium to the May Brent contract, which expired on Wednesday.

U.S. May crude fell 57 cents to $55.82, having dropped to $55.07 intraday.

"There is some profit taking, but the confirmed OPEC production increase ... has to weigh on prices to some degree," said John Kilduff, partner at Again Capital LLC in New York.

Brent's premium to U.S. crude was back above $5 a barrel, now comparing June contracts, after the spread narrowed to $3.34 intraday on Wednesday.

Disappointing U.S. economic data also helped pressure oil. U.S. housing starts rose far less than expected in March and permits recorded their biggest drop since last May, while initial jobless claims rose last week.

Wednesday's data showing the small build in U.S. crude oil stocks followed reports indicating production in the United States, including in shale play powerhouse North Dakota, was beginning to pull back as the price retreat since June weighs on producers.

Talks between OPEC and other major producers triggered speculation about deals to cut production and supported oil prices on Wednesday, though most analysts said an agreement was unlikely.

Reuters technical analyst Wang Tao told Reuters Global Oil Forum that Brent could rise towards $70 a barrel in the near term, but that a sharp downturn could happen after that.

(Additional reporting by Christopher Johnson in London and Henning Gloystein in Singapore; Editing by Marguerita Choy)