Oil reversed earlier losses on Wednesday as investors took heart from strict OPEC compliance with its pledge to cut output, although evidence of increasing U.S. production capped gains.
The Organization of the Petroleum Exporting Countries reduced its oil output for a second month in February, a Reuters survey found, showing the exporter group has boosted already strong compliance to around 94 per cent. Heftier cuts by Saudi Arabia and Angola helped offset weaker compliance by other members that agreed to limit their output.
May Brent crude futures were last up 27 cents at $56.78 a barrel by 1030 GMT, while U.S. West Texas Intermediate (WTI) futures for April were up 18 cents at $54.19.
Oil prices are 23 per cent higher than they were at the end of November, when OPEC announced its deal, but this strength has encouraged more U.S. production to come back online.