Oil rose Wednesday, after a government inventory report came in near analyst estimates.
Crude prices rose 62 cents to $82.32 U.S. a barrel on Wednesday.
Prices climbed after the closely watched inventory report from the U.S. Energy Information Administration showed mixed results for the week ended Mar. 12.
The EIA report showed that U.S. commercial crude oil inventories increased by one million barrels, below analyst estimates of 1.9 million barrels, according to a survey from research firm Platts.
Gasoline and distillate inventories fell by 1.7 million and 1.5 million barrels, respectively. According to Platts, analysts expected gas inventories to drop 1.5 million barrels and distillates to fall 1.6 million barrels.
Earlier in the morning, The Department of Labor's Producer Price Index (PPI), a measure of wholesale inflation, fell more than expected in February, and core PPI, which excludes fuel prices, came in on par with analyst estimates.
This data supported the notion that inflation is under control for now. On Tuesday, the Fed kept a benchmark interest rate unchanged, near zero, also citing low inflationary pressures.
The American Petroleum Institute (API) reported on Wednesday record high U.S. gasoline production and demand for February. According to API's monthly report, domestic crude production reached 5.5 million barrels per day, the highest level since June 2005.
Still, crude inventories continue to be about 4.2% lower than a year ago, compelling OPEC to keep quotas unchanged on Wednesday and keeping a lid on oil prices for now.
Despite bullish inventory and demand reports, Flynn says pressure will continue to come from Greece and China, since policy decisions there are expected to affect the dollar and crude prices in the near-term.
Traders will be busy with a handful of important government reports, including the consumer price index and the jobs report, due out on Thursday. April crude oil contracts will roll over on March 22.
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