Crude prices extend gains amid shrinking output

Oil prices continued to rise Tuesday on shrinking crude output.

U.S. Energy Information Administration (EIA) is scheduled to release the weekly data of the crude stockpiles Wednesday. Traders expected to see inventories of the country drop for a second week.

Crude production of U.S. decreased 23,000 to 8.802 million barrels a day the week ended May 6, according to EIA's weekly report released last Wednesday.

Last week US oil rig count fell for the eighth straight week. According to data released last Friday by oil service company Baker Hughes, the number of US oil rigs in use fell by 10 to 318.

The West Texas Intermediate for June delivery moved up 59 cents to settle at 48.31 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery increased 31 cents to close at 49.28 dollars a barrel on the London ICE Futures Exchange.