Crude oil futures ended marginally higher on Wednesday supported by data showing a drop in crude stockpiles in the US in the week ended January 28. Data released by the US Energy Information Administration (EIA) showed crude inventories dropped by 1.046 million barrels last week versus expectations for an increase of 1.525 million barrels. The American Petroleum Institute reported on Tuesday that US oil inventories fell 1.65 million barrels last week to meet increased demand. Street had forecast a 1.5 million barrels increase. However, upside remained capped as OPEC and its allies approved another 400,000 barrels per day in production that will begin in March.
Benchmark crude oil futures for March delivery added $0.06 or nearly 0.1 percent to settle at $88.26 a barrel on the New York Mercantile Exchange. Brent crude for April delivery rose $0.31 or 0.35 percent to settle at $89.47 a barrel on London's Intercontinental Exchange.