Oil prices rebounded in Wednesday's session on expectations that U.S. crude inventories have dropped and on signs that the world's top oil exporters will stick to agreed output cuts that took effect this week.
Industry group the American Petroleum Institute reported preliminary data that showed inventories fell by 7.4 million barrels last week, more than analysts expected.
Weekly U.S. industry and government reports were expected to show a 1.7 million-barrel crude draw for last week, analysts polled by Reuters said. Both data sets come late this week due to the New Year's holiday.
U.S. West Texas Intermediate crude futures settled up 93 cents, or 1.8 percent, at $53.26 per barrel.
Global benchmark Brent crude futures rose $1.02, or 1.8 percent, at $56.49 a barrel by 5:43 p.m. ET (2243 GMT). The contract reached an 18-month high in the previous session, but a strong dollar has shaved off most of those gains.