Oil stuck in a tight range on Wednesday. A Reuters survey showed on Tuesday that OPEC's output fell by over 1 million bpd in January to 32.27 million bpd between December and January. Oil markets found support from the latest Reuters survey, but the optimism quickly faded away after the American Petroleum Institute (API) reported inventory build across the board.

Data showed that oil inventories increased by 5.8 million barrels compared to the estimate of 3.06 million barrels. optimism quickly faded away after the American Petroleum Institute (API) reported inventory build across the board. Oil inventories increased by 5.8 million barrels compared to the estimate of 3.06 million barrels.

The black gold turns positive as markets cheer reports of Russia joining the OPEC producers in output cuts. Russia cut its oil and gas condensate production by around 100,000 barrels per day (bpd) between December and January, down to 11.11 million bpd, Reuters reported.

Oil markets now await the release of EIA weekly crude stockpiles report which will provide fresh direction on the commodity.