Oil prices have risen above $55 a barrel as Russia and OPEC producers have started delivering the reduced production as promised.
However, prices were capped from rising any further due to reports indicating a significant increase in US crude stock.
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This month, key non-OPEC oil producer Russia has reduced production by around 100,000bpd, as data provided to Reuters indicated.
A Reuters survey also indicated a high level of compliance by OPEC under the promised supply reduction targets.
Brent crude LCOc1 grew 37 cents at $55.95 a barrel, while US crude CLc1 grew 29 cents to $53.10.
Efforts of OPEC and key oil producers were offset by signs of an increasing supply in the US.
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By GlobalDataUS crude inventories grew by 5.8 million barrels, according to American Petroleum Institute.
PVM official Stephen Brennock was quoted by the news agency as saying: "The oil complex remains firmly stuck in its narrow range after the API reported an unrelenting increase in bulging US petroleum stockpiles.
"Any hopes of a sustained recovery in price will depend on increasing efforts by OPEC to curb output though the prospect of an upside breakout will be undermined by the budding revival in US crude production."
