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By Henning Gloystein
SINGAPORE, Feb 16 (Reuters) - Oil prices held steady on Thursday, supported by ongoing supply cuts led by producer group OPEC, although rising fuel inventories and crude production in the United States weighed on sentiment.
Brent crude futures
U.S. West Texas Intermediate (WTI) crude futures
The Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia have agreed to cut output by almost 1.8 million barrels per day (bpd) during the first half of 2017, and estimates suggest compliance by OPEC is around 90 percent.
The production cuts are aimed at reining in a global fuel supply overhang that has dogged markets for over two years.
Yet despite action so far, inventories remain bloated and supplies high, especially in the United States.
U.S. crude oil and gasoline inventories soared to record highs last week as refineries cut output and gasoline demand softened, the Energy Information Administration said on Wednesday.
Crude inventories
Gasoline stocks
The bloated stocks come as U.S. crude oil production
Because of the conflicting price drivers of OPEC's cuts and rising U.S. inventories and production, analysts said that prices were largely moving sideways.
"Brent oil looks neutral in a range of $55.38-$56.44 per barrel," said Reuters technical commodities analyst Wang Tao.
Both Brent and WTI crude futures have traded within a $5 per barrel price range since the start of the year.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC: OPEC vs U.S. oil production
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Henning Gloystein; Editing by Richard Pullin) ((henning.gloystein@thomsonreuters.com; +65 6870 3263; Reuters Messaging: henning.gloystein.thomsonreuters.com@reuters.net))