Oil prices traded little changed on Thursday, as support from a weaker dollar was offset by a stubbornly high level of U.S. inventories near record highs that suggested OPEC-led output cuts were starting to drain supplies.
The Organization of the Petroleum Exporting Countries and some non-OPEC producers cut production from Jan. 1 to reduce record stocks of crude. But an oil price rally after the deal has been hobbled by data showing persistently rising U.S. stockpiles.
Prices were pressured by data from market intelligence firm Genscape showing a build of more than 2 million barrels in the week to March 14 at the Cushing, Oklahoma delivery point for U.S. crude futures, traders said.
Figures this week showing a modest slide in stockpiles in the United States, the world's biggest oil consumer, helped lift oil prices in the previous session after they tumbled to three-month lows.
The U.S. Energy Information Administration said on Wednesday that crude inventories fell last week, the first decline after nine weeks of increases, but only a dip of 237,000 barrels from a record high.