It had settled down $1.35, or 2.1 percent, on Tuesday on a wave of profit-taking after news of a key North Sea pipeline shutdown helped send the global benchmark above $65 for the first time since mid-2015.
U.S. West Texas Intermediate (WTI) crude futures were at $56.74 a barrel at 0711 GMT, up 14 cents, or 0.25 percent from their last settlement. It has particular significance to global markets because Forties is the largest out of the five crude oil streams that underpin the dated Brent benchmark. The market is expected to remain volatile as concerns remain around when a major pipeline in Europe will come back online.
The U.S. crude oil stockpiles declined while gasoline inventory levels rose for the second week in a row, a report from U.S. Energy Department said Wednesday.
The Energy Information Administration estimates OPEC crude oil production averaged 32.5 million barrels per day (MMBPD) in 2017, a 0.2 MMBPD decrease from 2016 levels, and EIA forecasts OPEC crude production will average 32.7 MMBPD in 2018.
Manmohan Singh video attacks PM Modi, Amit Shah questions his 'anger'
Prime Minister Narendra Modi and former Prime Minister Manmohan Singh were or rather say are engaged in a war of words. Modi had insinuated that Singh was colluding with Pakistan in the Gujarat polls.
Gasoline stocks rose by 2.3 million barrels, compared with analysts' expectations in a Reuters poll for a 2.5 million-barrel gain. That is nearly twice the decline of analysts' expectations for a drop of 3.8 million barrels.
Another cap on prices has been soaring US oil production, which has risen by 16 percent since mid-2016 to 9.78 million barrels per day, the highest since the early 1970s and close to levels from top producers Russian Federation and Saudi Arabia.
Crude oil future rose Wednesday ahead of the government's official U.S. inventories report.
Despite this, the International Energy Agency has said it saw no immediate need to act, for instance with the release of strategic stockpiles, as the market remains well supplied.