Oil prices rose in quiet trading on Thursday, supported by strong U.S. economic data, a pause in the U.S. dollar rally and optimism that crude producers would abide by an agreement to limit output.
The gains were curbed by an unexpected rise in U.S. crude inventories last week and moves by Libya to boost output over the next few months.
Brent futures for February delivery rose 59 cents, or 1.1 percent, to $55.05 a barrel by 2:36 p.m. ET (1928 GMT), having previously finished 89 cents lower.
U.S. West Texas Intermediate crude settled up 46 cents, or 0.88 percent to $52.95 a barrel, after closing the previous session down 81 cents.
The dollar index, which tracks the greenback against a basket of six currencies was roughly flat as investors took profits after its rise to a 14-year peak earlier this week. A weaker dollar makes greenback-denominated commodities including oil cheaper for holders of other currencies.