Oil's recent rally was under pressure on Wednesday after an unexpected drawdown in U.S. crude and gasoline stocks was offset by worries that Saudi Arabia was cranking output to record highs even as the Organization of the Petroleum Exporting Countries (OPEC) discussed ways to ease a global glut.
Even so, U.S. West Texas Intermediate crude futures settled at $46.79 U.S. a barrel, up 0.5%, on the day, or about 21 cents.
Brent crude futures rebounded from mid-day losses to trade 55 cents higher at $49.78 U.S. a barrel.
Oil had hiked about 11% over the past four sessions since Saudi Arabia, an OPEC kingpin, fanned speculation the group was ready to reach an output freeze agreement with non-OPEC producers.
The markets briefly extended gains after the U.S. Energy Information Administration (EIA) Wednesday morning said domestic crude inventories fell 2.5 million barrels last week, surprising analysts who had forecast a build of 522,000 barrels.
The EIA also said gasoline stockpiles also fell 2.7 million barrels, more than expectations for a 1.6-million-barrel drop.
