The West Texas Intermediate (WTI) for April delivery added 43 cents to settle at 64.44 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for May delivery increased 38 cents to close at 67.90 dollars a barrel on the London ICE Futures Exchange.
U.S. crude oil inventories increased by 13.8 million barrels during the week ending March 5, the U.S. Energy Information Administration (EIA) said in a report on Wednesday. Analysts polled by S&P Global Platts had expected the EIA to report a climb of 2.7 million barrels in U.S. supplies for the latest week.
Oil prices have seen strong momentum recently, especially after OPEC+'s surprise decision on Thursday to extend most production cuts into April.
Yet, analysts said the surging oil price itself would pose risks to the mid-term price performance.
"For one thing, it could put the brakes on growth in demand, especially in emerging economies," Eugen Weinberg, energy analyst at Commerzbank Research, said in a note on Wednesday.
"And for another, non-OPEC production should increase more sharply than expected," he added.
In its closely-watched short-term outlook published Tuesday, the U.S. EIA envisaged a significantly more pronounced rise in U.S. oil production this year than it did a month ago.
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