Oil prices rose on Wednesday a day after a report showed inventories fell at the Cushing, Oklahoma, delivery hub, but gains were capped as investors awaited official U.S. inventory data.

Crude oil and oil product data due from the Department of Energy's Energy Information Administration (EIA) is expected to show further stockpiling.
Brent December crude futures were up 49 cents at 47.30 dollars a barrel and unwinding a rally that took the price to a peak of 54 dollars this month.

U.S. crude for December delivery rose 45 cents to 43.65 dollars a barrel, up from Tuesday's nine-week low of 42.58 dollars.
"I'm bearish going into Q1 … and what was quite telling is the last rally did not go further than 54 dollars and it was just sold down," SEB analyst Bjarne Schieldrop said.

The whole signal that OPEC members are undercutting each other is not sending a great signal to the market."
Iraq's southern oil exports have reached 3.10 million barrels so far this month indicating continued high output from the larger members of the Organisation of the Petroleum Exporting Countries.

The premium for crude for delivery in 12 months’ time over that for December delivery, contango, rose to its highest in six weeks.
On the physical market, the contango in the North Sea derivatives market rose to its highest since early September this week, reflecting how excess barrels are weighing on near-term prices.

Crude stocks at the Cushing delivery hub fell by 748,000 barrels, data from the American Petroleum Institute showed late on Tuesday. (Reuters/NAN)