Oil prices ticked higher today on expectations that US crude inventories are falling and signs that oil producers will stick to agreed output cuts that took effect this week.
Global benchmark Brent crude futures were up 10 cents at $55.57 a barrel in mid-morning trade.
The contract had reached an 18-month high in the previous session, but a strong dollar has shaved off most of those gains.
US West Texas Intermediate crude futures were trading at $52.42 per barrel, up nine cents.
Weekly US statistics on oil stocks are expected to show a 1.7-million-barrel draw tomorrow, analysts polled by Reuters said.
OPEC member Kuwait also lifted expectations that producers will comply with a deal to reduce oversupply after its state-owned oil producer said today it would cut output in the first quarter.
Members of the Organisation of the Petroleum Exporting Countries in November agreed their first output cut since 2008 in an attempt to stabilise oil prices.
As part of the deal, Kuwait has to reduce output by 131,000 barrels per day.
An OPEC committee meeting to monitor compliance with the agreement is scheduled for January 21-22 in Vienna.
Also reflecting a tightening market, traders expect top oil exporter Saudi Arabia to raise the official selling price for its crude to Asia in February.