Global tensions, U.S. storms and economy lift oil, Kuwaiti bank says

Opec and other producers including Russia pledged to reduce oil output by about 1.8 million barrels a day through March

Monday's gains came as Hurricane Irma struck the US southeast with less force than once feared, easing worries that energy demand would be hit hard.

The hurricane knocked out power to almost 4 million homes and businesses in Florida on Sunday. By Monday morning, it had weakened to a tropical storm, heading towards Georgia.

Global benchmark Brent crude edged 32 cents higher to $54.16 per barrel by 1235 GMT from the previous close.

In May, Opec and non-Opec members agreed to extend production cuts of 1.8m barrels per day for a period of nine months until March 2018 but rising production from the U.S., Nigeria and Libya has undermined the oil cartel's efforts to curb excess supply.

October West Texas Intermediate crude CLV7, +1.20% tacked on 59 cents, or 1.2%, to settle at $48.07 a barrel on the New York Mercantile Exchange after tapping a low at $47.

OPEC and 10 other producers including Russian Federation first agreed late previous year to cut about 2% of global oil production to drain a global oversupply that has kept prices depressed.

The firm said "given the only modest impact Harvey had on oil production, the combined demand loss generated by these two hurricanes will be a bearish shock for global oil balances in September".

OPEC said inventories were falling and that an increase in the price of Brent crude for immediate delivery to a premium to that for later supplies raised hopes that a rebalancing is under way.

Analysts surveyed Monday by S&P Global Platts expect USA crude stocks rose 10.1 million barrels.

Official data from the Energy Information Administration will be released Wednesday.

In market developments, Saudi Arabian Energy Minister Khalid al-Falih discussed with his Venezuelan and Kazakh counterparts the possible extension of the global oil supply cut pact beyond March 2018, the Saudi energy ministry said in a weekend statement reported widely on Monday. It is also costing them market share to rivals, including partner Russian Federation and the U.S. Pipelines from Cushing run to key refineries in the U.S. Gulf Coast of Mexico and the hub is an important indicator of crude demand.

OPEC is working to drain the five-year surplus through coordinated production declines and economists at the group said Tuesday that its demand forecast for the year was up 50,000 barrels per day to 1.42 million bpd, reflecting OECD growth as well as China.

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