Oil edged further above $55 U.S. a barrel on Wednesday supported by signs that Russia and Organization of the Petroleum Exporting Countries producers are delivering on promised supply reductions, although a report showing a large rise in U.S. crude inventories limited gains.
Prices briefly dipped but mostly held their gains after the U.S. Energy Information Administration (EIA) reported stockpiles of U.S. crude rose by 6.5 million barrels. Analysts expect crude stocks to rise by 3.3 million barrels.
The stocks rose last week as refineries cut output and imports jumped by 530,000 barrels per day
EIA said countering that bearish data, crude stocks at the delivery hub fell by 1.2 million barrels
Gasoline stocks were up by 3.9 million barrels, compared with analysts' expectations in a poll for a one-million-barrel gain. EIA also said distillate stockpiles, which include diesel and heating oil, increased by 1.6 million barrels, versus expectations for a 903,000-barrel drop.
Brent crude rose 35 cents to $55.93 U.S. a barrel late Wednesday morning. U.S. crude was up 25 cents to $53.06 U.S.
Russia has cut production in January by around 100,000 barrels per day (bpd), according to data provided to media outlets on Wednesday.
A Russian cut of 100,000 bpd would be a third of Moscow's pledge to reduce its output by 300,000 bpd. However, Russia has said that its planned output reduction would be gradual.
OPEC has implemented most of its reduction. A survey on Tuesday found that OPEC members in January have delivered on about 82% of their deal to lower supply by 1.16 million bpd.
