Traders focused on preliminary US production estimates in the weekly Energy Information Administration (EIA) report that suggested domestic output is still climbing.
The report said crude oil inventories fell by 2.17 million barrels in the week ended April 7th compared to economist estimates for an uptick of 87,000 barrels.
The weekly USA government data also showed an unexpected drop in United States crude oil stocks and a decline in gasoline and distillate inventories, adding to more bullish sentiment.
OPEC data showed members of the group had cut March output beyond the level they had promised.
Despite bullish calls from Riyadh on compliance, the price of oil and the terms of the arrangement, secondary sources reported total Saudi oil production last month was just shy of 10 million barrels per day for a gain of about a half percent from February.
The Paris-based IEA said yesterday that it sees the global oil market as close to balancing after a fall in stockpiles in developed countries in March.
Benchmark Brent crude futures slid 4 cents, or 0.1 percent, to $55.82 a barrel by 0231.
The bank forecasts US oil production increasing between 700,000 and 800,000 bpd next year, and continued growth from deepwater oil formations and the oilsands.
"I wouldn't be surprised to see a bit of book squaring going on now, ahead of the USA inventory data which is due on Thursday morning Asia time", he said, also noting that current prices have attracted shale oil producers in the past. A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.
"The forecast for non-OPEC supply in 2017 will also depend on how much USA tight oil production improves in the coming months", OPEC said in its April Bulletin.
Crude oil turned positive on Tuesday, reversing course on reports that Saudi Arabia has told OPEC officials it wants to continue OPEC cuts for an additional six months.
Investors are looking ahead for further official data to be released by the US government later on Wednesday.
The production cut agreed past year was from levels as assessed by the secondary sources. But the oversupply returned by the fourth quarter, when oil producers made 1.1 million barrels a day more than global demand.
This is while the USA total motor gasoline imports, including both finished gasoline and gasoline blending components, last week averaged 488,000 barrels per day, according to the report.