1st LD Writethru: U.S. oil price rise amid supply forecast

U.S. crude price gained Monday amid the speculation that low price will curb the surplus supply.

U.S. rig count continued to drop last week. The number of U.S. rigs actively drilling for oil and natural gas fell 34 rigs to 954, reported oil service company Baker Hughes Friday. Analysts believed that U.S. shale oil producers started to slow down the production amid the low prices.

U.S. crude production decreased 20,000 barrels to 9.384 million barrels a day as the week ended April 10, according to Energy Information Administration (EIA).

U.S. crude price was also boosted by the stimulus program of China, the top oil consumer of the world.

The People's Bank of China, the country's central bank, on Sunday decided to lower the reserve requirement ratio (RRR), the minimum level of reserves banks must hold, by one percentage point effective from Monday.

This is the second time that the central bank has adopted an across-the-board RRR cut plus targeted cuts following a similar move on Feb. 4.

Light, sweet crude for May delivery gained 64 cents to settle at 56.38 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for June delivery stay unchanged to close at 63. 45 dollars a barrel. Endite