Oil prices have remained fairly steady as US data showed a drop in crude inventory, which has offset doubts among investors that exporting countries may not reduce output.
Benchmark Brent crude oil and US light crude oil fell marginally by 15 cents and 10 cents per barrel respectively. Benchmark Brent crude oil traded at $56.31, while US light crude oil was priced at $53.16, reported Reuters.
Late last year, OPEC countries and prominent non-OPEC producers decided to curb production to reduce the global oversupply.
In March and April, Abu Dhabi National Oil Company (ADNOC) plans to schedule oilfield maintenance, indicating its support towards the planned output cut. Nonetheless, there are concerns over the uncertainity due to the maintenance on production.
Some investors also believe that several countries may not stick to the production-cut plan.
Citing results from a survey of its participants, Singapore Exchange told Reuters: "There remains a question mark over whether OPEC, with a long history of non-compliance, will actually follow through (with the cuts). Very few respondents expect full compliance."
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According to the report of American Petroleum Institute, the US crude inventories dropped by 7.4 million barrels to reach 482.7 million in the week ending 30 December.
Philips Futures analyst was quoted by Reuters as saying: “Tonight's Energy Information Administration (EIA) inventory numbers should also show a similarly large drawdown in crude oil inventories.”