Oil futures drooped on Wednesday, after eight straight upward sessions of gains after U.S. crude inventory data suggested that the market was still heavily supplied.
Traders focused on preliminary U.S. production estimates included in the weekly report from the U.S. Energy Information Administration (EIA) that suggest domestic output is still climbing. The report also showed stockpiles at the U.S. crude hub at Cushing, Oklahoma rose 276,000 barrels in the week.
The EIA data did, however, show an unexpected drop in overall U.S. crude inventories, 2.2 million barrels over the week as imports declined by 717,000 barrels a day.
Brent oil gained for an eighth straight session on Wednesday, having recovered nearly all last month's losses, after Saudi Arabia was said to be pushing its fellow members of the Organization of the Petroleum Exporting Countries and some rivals to prolong supply cuts beyond June.
Brent crude futures were down 17 cents at $56.06 U.S. a barrel, having touched a one-month high of $56.65 U.S.
Wednesday's U.S. data followed more bullish news from OPEC nations that they had cut March oil output beyond the measures they had promised.
OPEC and other producers, including Russia, have pledged to cut output by around 1.8 million barrels per day during the first half of 2017 to control oversupply.
