Investing.com - Oil recovered strongly Wednesday as industry data showed a surprise draw in U.S. crude stocks.
Oil had slumped Tuesday to multi-month lows as Saudi Arabia told OPEC it raised output in February.
U.S. crude was up $1.02, or 2.14%, at $48.74 at 08:00 ET. Brent crude added 96 cents, or 1.89%, to $51.88.
American Petroleum Institute Tuesday reported a fall of 531,000 barrels in U.S. crude stocks in the latest week.
Official Energy Information Administration figures Wednesday are expected to show a build-up in crude inventories of 3.7 million barrels.
The International Energy Agency estimated OPEC compliance with agreed output cuts at 98% in the first two months of the year. It estimated Saudi compliance at 135%.
OPEC and non-OPEC producers have agreed output cuts of 1.8 million barrels a day in the first half.
Concerns that higher U.S. output could wipe out the impact of the cuts continue to overhang the market.