WTI rebounds above $54, turns positive on the day

• Crude oil stocks increased by less than expected in the U.S.
• Azerbaijan oil minister says OPEC, Non-OPEC need to extend oil cuts agreement.

Crude oil stayed under pressure during the first half of the day on Wednesday and the barrel of West Texas Intermediate fell below the $53 mark for the first time in a week. However, with the latest weekly EIA report showing a smaller-than-expected buildup in the U.S. crude oil inventories, the WTI staged a meaningful recovery and was last up 0.95% on the day at $54.45.

The EIA said that commercial crude oil stocks increased by 1.3 million barrels in the week ending February 1 compared to analysts' estimate of 2.18 million barrels. Commenting on the data, "As we move deeper into maintenance season, we have seen a third consecutive build to crude stocks. The build is once again only modest, given stymied imports and strong exports," Matthew Smith, director of commodity research at ClipperData, told Reuters.

Meanwhile, Azerbaijan's oil minister earlier in the day told reporters that he saw OPEC and non-OPEC needing to extend the output cut agreement to provide additional support to the crude oil recovery.

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