Oil prices traded mixed as market particpants eyed OPEC's monthaly report and the U.S. crude oil inventories data. According to the U.S. Energy Information Administration (EIA) on Wednesday, U.S. crude inventories declined by 0.75 million barrels to 502.0 million in the week to February 05.
Analysts had expected U.S. crude oil inventories to rise by 3.6 million barrels.
Gasoline inventories increased by 1.3 million barrels, according to the EIA.
Crude stocks at the Cushing, Oklahoma, increased by 523,000 barrels.
U.S. crude oil imports dropped by 1.13 million barrels per day.
Refineries in the U.S. were running at 86.1% of capacity, down from 86.6% the previous week.
The Organization of the Petroleum Exporting Countries (OPEC) released its monthly report on Wednesday. OPEC said that oil supply rose by 130,000 barrels per day (bpd) to 32.33 million bpd in January, compared to December.
The group said noted that oil demand is expected to slow in 2016. Global oil demand growth is expected to be 1.25 billion bpd in 2016, down from its previous forecasts of 1.26 billion bpd. Demand for OPEC oil is expected to be 31.61 million bpd in 2016, down its previous forecasts of 31.65 million bpd.
Non-OPEC output is expected to decline 700,000 bpd in 2016 due to low oil prices.
The U.S. oil output is expected to drop by 470,000 bpd in 2016.
Global oil supply surplus is expected to be 720,000 bpd if OPEC continues to produce at its January pace, up from the previous estimate of 530,000 bpd.
WTI crude oil for February delivery declined to $27.74 a barrel on the New York Mercantile Exchange.
Brent crude oil for February rose to $30.90 a barrel on ICE Futures Europe.