The oil price gyrated Tuesday on supply-cut hopes ahead of a meeting of top exporters in Doha, Qatar. Those hopes were dashed when Russia and Saudi Arabia agreed to freeze output at January's levels instead.
It could become the first joint OPEC and non-OPEC deal in 15 years, as oil producers seek to boost persistently low oil prices. The energy commodity has declined 70 percent since the summer of 2014.
In economic news, U.S. producer prices unexpectedly rose in January as margins for wholesale machinery and equipment increased, but lower energy prices and a strong dollar continue to keep inflation in check, Reuters said.
The Labor Department said Wednesday its producer price index edged up 0.1 percent last month after slipping 0.2 percent in December. In the 12 months through January, the PPI decreased 0.2 percent after declining 1.0 percent in December.
Ex-food and energy, PPI rose 0.4 percent.
Housing starts fell 3.8 percent in January, while building permits fell 0.2 percent.
Treasury yields edged higher after the data, while the U.S. dollar index held slightly higher against major world currencies, with the euro at $1.11 and the yen at 114.30 yen against the greenback as of 8:42 a.m. ET.
Later in the day, investors will eye minutes from the last Federal Reserve meeting at 2:00 p.m. ET.
January's industrial production showed a 0.9 percent rise, with capacity utilization at 77.1 percent.
St. Louis Fed President James Bullard is due to speak later on Wednesday.