Investing.com - Oil prices were under pressure during European morning hours on Wednesday, nearing a four-week low after data overnight showed another massive increase in U.S. crude supplies.
The U.S. West Texas Intermediate crude April contract shed 41 cents, or around 0.8%, to $52.73 a barrel by 4:10AM ET (09:10GMT). The U.S. benchmark fell to $52.54 last week, which was the lowest since February 8.
Elsewhere, Brent oil for May delivery on the ICE Futures Exchange in London dipped 35 cents to $55.56 a barrel. The global benchmark touched $55.03 last week, its cheapest since February 8.
After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories rose by a whopping 11.6 million barrels in the week ended March 3.
The API report also showed a drop of 5.0 million barrels in gasoline stocks, while distillate stocks declined 2.9 million barrels.
The U.S. Energy Information Administration will release its official weekly oil supplies report at 10:30AM ET (15:30GMT) Wednesday.
Last week's numbers showed U.S. output helped boost crude inventories to record highs, feeding concerns about a global glut.
Oil prices have been trading in a narrow $5 range around the mid-$50s over the past two months as sentiment in oil markets has been torn between rising stockpiles and increased shale production in the U.S. and hopes that oversupply may be curbed by output cuts announced by major global producers.
Saudi Energy Minister Khalid al-Falih gave mixed messages on future production cuts by the Organization of the Petroleum Exporting Countries.
Speaking at the CERAWeek energy conference in Houston, Falih said last year's historic agreement by OPEC and non-OPEC countries to curb supply and raise oil prices has improved market fundamentals. Still, it was premature to consider whether or not the cuts should be continued into the second half of the year, he added.
OPEC and non-OPEC countries have made a strong start to lowering their oil output by almost 1.8 million barrels per day by the end of June, with compliance currently at around 94%.
Any decision to extend OPEC production cuts past June would have to include the continued participation by the non-OPEC members of the November accord, OPEC Secretary General Mohammad Barkindo said on Tuesday.
Elsewhere on Nymex, gasoline futures for April slipped 0.9 cents, or around 0.6%, to $1.688 a gallon, while April heating oil was little changed at $1.613 a gallon.
Natural gas futures for April delivery jumped 7.3 cents, or 2.6%, to $2.897 per million British thermal units as traders continued to monitor shifting weather forecasts to gauge demand for the fuel.