Oil prices turned negative Thursday after U.S. government data showed a big increase in fuel stockpiles offset a large decline in commercial crude inventories.
Figures released Thursday by the Energy Information Administration showed U.S. crude inventories fell by 7.1 million barrels in the week through Dec. 30 as refineries boosted output. That figures compared with expectations for a decline of about 2.2 million barrels.
EIA added that crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.074 million barrels.
Gasoline stocks rose by 8.3 million barrels, compared with analyst expectations for a 1.8-million-barrel gain.
According to EIA data, distillate stockpiles, which include diesel and heating oil, rose by 10.1 million barrels, versus expectations for a 1.1-million-barrel increase.
Benchmark Brent crude oil was down 29 cents a barrel at $56.17 U.S. as the clock approached noon ET, off a session peak of $57.35 U.S.
U.S. light crude oil was down 31 cents a barrel at $52.95 U.S., after rising to $54.12 at the high of the day.
U.S. gasoline prices were down nearly 1.8% after the data were released.
Analysts at Goldman Sachs said even if members of the Organization of the Petroleum Exporting Countries reduced production as promised, there was "only moderate oil spot price upside given the expected supply response to higher oil prices and new production".
Goldman also said it expected Brent prices to peak at $59 U.S. a barrel by mid-2017.
