Oil prices have improved after US data revealed a significant reduction in inventory.

The development suggests that the global oil glut could be nearing an end after OPEC decided to decrease its production.

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Benchmark Brent crude oil LCOc1 gained 70 cents to get traded at $56.54 a barrel, while US light crude CLc1 reached $54.29 after gaining 70 cents, reported Reuters.

The latest Industry data published show that US crude stocks declined by 884,000 barrels in the week that ending on 17 February to reach 512.7 million, against analysts’ predictions of an increase of 3.5 million.

The American Petroleum Institute stated that US gasoline and distillate fuel stocks also decreased in the same period.

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"If the US stock draws are confirmed by the EIA, we could see the market go much higher."

Since the OPEC countries decided to reduce oil production by 1.8 million barrels, US shale companies have increased their output to increase the stocks of the world's biggest oil consumer.

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PVM Oil Associates analyst Tamas Varga stated to the news agency that oil prices may improve further after US government's Energy Information Administration releases the official data.

Reuters quoted Varga as saying: “If the US stock draws are confirmed by the EIA, we could see the market go much higher.”

Along with the OPEC countries, 11 non-OPEC nations also reduced their output.

OPEC sources told the news agency that the non-OPEC oil producers delivered nearly 60% of the promised output-cut.