Oil traded mixed on Wednesday with Brent Crude losing -0.11%, currently trading at USD56.33 a barrel - setting new one-month lows. Yesterday Brent slumped by -3.30%. West Texas Intermediate added +0.19% currently quoted at USD48.38.

Brent Crude was weighed down by a broadly stronger U.S. dollar as the commodity is dollar-denominated. WTI took some support from U.S. stockpiles who registered an unexpected drop. Stockpiles of the world largest consumer of oil declined by more than 400,000 barrels, reported the American Petroleum Institute.

Now all eyes are on official data from the U.S. Energy Information Administration on U.S. Crude Oil Inventories due at 14:40 GMT.

In Libya two oil fields are shut after IS attacks fuelling concerns over supply risks.

On Sunday OPEC Secretary-General Abdullah al-Badri said that OPEC members should not lower production as this would only help U.S. producers with their higher-cost shale. Data from Baker Hughes on Friday showed that U.S. rig-numbers further declined by 63 - the lowest count since June 2011.

Oil prices declined by almost 60% between June 2014 and January 2015 and recovered by almost 35% in 2015.Although prices rebounded after setting new lows, worldwide supply still exceeds demand in a period of low global economic growth, pushing stockpiles to record highs, weighing on prices.