Prices for petroleum inched up for a fourth consecutive session on Wednesday, close to their mid-2015 peaks, with the market awaiting evidence of supply reductions by the Organization of the Petroleum Exporting Countries in the new year.
International Brent crude futures crude futures rose 31 cents at $56.40 U.S. a barrel by late morning Wednesday, after closing the previous session up 93 cents.
U.S. benchmark West Texas Intermediate (WTI) crude oil prices were up 31 cents at $54.21 U.S. per barrel after settling 88 cents higher at $53.90 a barrel in the previous session.
Oil prices have gained 25% since mid-November, helped by expectations for OPEC's supply cut and solid U.S. economic figures that have also bolstered equity prices.
Trading is expected to remain thin this week ahead of the New Year holiday.
The market is taking a wait-and-see approach on the official start of the landmark deal reached by OPEC and several non-OPEC members to reduce their output. The deal is set to kick in from Jan. 1.
OPEC and non-OPEC producers are expected to lower production by almost 1.8 million barrels per day (bpd), with Saudi Arabia, OPEC's largest producer, agreeing to bear the lion's share of the cuts.
In a sign that the world's oil major producers may abide by their agreement, OPEC member Venezuela said it will cut 95,000 bpd of oil production in the New Year.
Russian oil producer Gazprom Neft said it planned to boost oil output by 4.5% to 5% next year, less than it had intended before Russia, one of the non-OPEC member countries, joined a deal to reduce a global supply overhang.
