Oil drops for second day

Crude oil lost more ground on Wednesday with rising US oil output adding pressure on the market, although OPEC production cuts continued to offer support.

Investors in the oil market are awaiting weekly inventories data from the US Energy Information Administration due at 1530 GMT on Wednesday.

West Texas Intermediate crude futures lost 15 cents, or 0.3 percent, to $53.86 a barrel by 0723 GMT, and Brent crude gave up 13 cents, or 0.2 percent, to $56.38.

"Signs that the US shale industry is recovering weighed on the market," ANZ said in a report.

US crude stockpiles have risen for seven straight weeks. Forecasts for another build last week, this time of 3.1 million barrels, have fueled worries that demand growth may not be sufficient to soak up the global crude oil glut.

US stockpiles rose 2.5 million barrels in the week ended Feb. 24, according to a report from trade group the American Petroleum Institute. Gasoline stockpiles rose unexpectedly and distillate stockpiles fell more than expected, the API said. Crude declined slightly on the report.

The market rose earlier in the session as a speech by US President Donald Trump offered little on plans by his administration to boost US oil production.