Oil prices have risen slightly with crude inventory rising at key delivery hub in the US negating the underlying excess in supply.
Brent crude futures for December delivery were trading 49 cents down at $47.30, while US crude futures for delivery in December were trading 45 cents higher at $43.65 per barrel, according to Reuters.
However, the inventory data released by American Petroleum Institute showed that the stocks at Cushing delivery hub fell by 748,000 barrels yesterday.
Despite glut in the market, the Organization of the Petroleum Exporting Countries are pumping record amount of oil to retain their market share.
It is evident as Iraq’s southern oil exports have reached 3.10 million barrels so far this month, the agency reported.
SEB analyst Bjarne Schieldrop was quoted by Reuters as saying: "I’m bearish going into Q1 … and what was quite telling is the last rally did not go further than $54 and it was just sold down.
"The whole signal that OPEC members are undercutting each other is not sending a great signal to the market."
The oil traders are keenly watching Energy Information Administration (EIA) data to be announced later today.
US Federal Reserve is also expected to announce the fiscal policy, which could indicate interest rate changes.