Oil prices gained on Wednesday as members of the Organization of the Petroleum Exporting Countries said they were committed to eroding a global surplus of crude. However, increasing shale production in the United States and global stocks threatened to pull prices down.
Data released Wednesday by the Energy Information Administration (EIA) showed that U.S. commercial crude inventories decreased by one million barrels from one week ago, falling to 532.3 million. The EIA added that total motor gasoline inventories increased by 1.5 million barrels last week and are now near the upper limit of the average range.
Brent crude futures were up six cents at $54.95 U.S. a barrel on this news, while U.S. West Texas Intermediate (WTI) crude futures were down two cents at $52.39 U.S. a barrel.
Crude fell in the previous two sessions, but obtained a boost from comments on Wednesday by OPEC's secretary-general that the group was committed to cutting inventories to the five-year average.
OPEC and other producers such as Russia agreed to cut output by almost 1.8 million barrels per day in the first half of 2017 to drain a supply overhang that has persisted for nearly three years.
Gasoline stocks also posted a counter-seasonal build of 1.4 million barrels. Gasoline margins have since come under downward pressure, which analysts warned could undermine crude prices as well.
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