Oil prices pared gains Thursday, on word from a government agency of a surprise increase in the nation's crude stockpiles as refinery activity fell.
The figures from the Energy Information Administration showed that U.S. commercial crude inventories rose by 2.3 million barrels in the week through Jan. 13 to 485.5 million barrels.
American Petroleum Institute (API) data on Wednesday showed U.S. crude stocks fell 5.04 million barrels that same week, in contrast to expectations of a 342,000-barrel decline. The data also showed much larger-than-expected increases in stocks of gasoline and distillates.
EIA data also revealed that gasoline stocks increased by six million barrels, though distillate inventories fell by one million barrels.
U.S. oil production, which has been ticking up in recent weeks, was flat in the most recent weekly report.
International benchmark Brent crude was up 25 cents at $54.17 U.S. a barrel late Thursday morning, after closing down 2.8% in the previous session.
Oil prices rebounded from a one-week low earlier on Thursday as the International Energy Agency said oil markets were tightening even before cuts agreed by members of the Organization of the Petroleum Exporting Countries and other producers took effect.
