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Global benchmark Brent crude futures were up 10 cents at $55.57
a barrel by 1110 GMT (6:10 a.m. ET). The contract reached an
18-month high in the previous session, but a strong dollar has
shaved off most of those gains.
U.S. West Texas Intermediate crude futures were trading at
$52.42 per barrel, up 9 cents.
"Positive equities and gains in industrial metals this morning,
as well as expectations that U.S. crude oil stocks will show a
decline ... are ingredients helping to drive a slight gain in
Brent crude," said Bjarne Schieldrop, chief commodities analyst
at SEB Markets in Oslo.
Weekly U.S. statistics on oil stocks are expected to show a
1.7-million-barrel draw on Thursday, analysts polled by Reuters
said. [EIA/S]
OPEC member Kuwait also lifted expectations that producers will
comply with a deal to reduce oversupply after its state-owned
oil producer said on Wednesday it would cut output in the first
quarter.
Members of the Organization of the Petroleum Exporting Countries
in November agreed their first output cut since 2008 in an
attempt to stabilize oil prices.
As part of the deal, Kuwait has to reduce output by 131,000
barrels per day.
An OPEC committee meeting to monitor compliance with the
agreement is scheduled for Jan. 21-22 in Vienna.
"Prices are likely to remain volatile until there is evidence
that quotas are being adhered to," analysts at Cenkos Securities
wrote.
Also reflecting a tightening market, traders expect top oil
exporter Saudi Arabia to raise the official selling price for
its crude to Asia in February.
(Additional reporting by Henning Gloystein in Singapore; Editing
by Dale Hudson)
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