Oil price gains eased on Thursday after U.S. government data showed a seventh straight build in crude stocks, hikes that suggested high inventories could undermine moves by the Organization of the Petroleum Exporting Countries to cut output.
Benchmark Brent crude oil rose 71 cents a barrel, or 1.3%, to $56.55 U.S. by mid-afternoon Thursday after touching a high of $57.26. U.S. light crude settled up 86 cents, or 1.6%, at $54.45 U.S. a barrel after touching $54.94 a barrel.
Prices extended gains soon after the inventory data was released, but much of those advances dissipated over the next 30 minutes.
Figures released Thursday by the Energy Information Administration revealed that U.S. crude stocks rose 564,000 barrels last week, the seventh consecutive rise, although less than previously expected.
Still, at the Cushing, Oklahoma delivery hub, inventories fell by more than 1.5 million barrels, its largest draw since October.
EIA data also showed that U.S. gasoline stocks fell by 2.6 million barrels, and distillate fuel stocks dropped by 4.9 million barrels the most since October 2014.
OPEC and producers including Russia are striving to reduce production by around 1.8 million barrels per day in an attempt to drain an oversupply that has kept prices depressed for more than two years.
But some analysts considered the trading range a growing concern, particularly since high compliance among OPEC members to curb output is having little upside.
