New York's main contract, West Texas Intermediate (WTI) for February delivery, was up 22 cents at USD 93.89 in mid-morning trade while Brent North Sea crude for February rose seven cents at USD 107.42.
"The market has just pulled a bit at this stage after a few days of steep decline for WTI," Ric Spooner, chief market analyst at CMC Markets in Sydney, said.
"I think investors have gone into the wait-and-see mode prior to the release of the inventory data," he said.
Estimates from 11 analysts surveyed by the Wall Street Journal showed US stockpiles are projected to have fallen 600,000 barrels on average in the week to January 3.
US Energy Information Administration will release official stockpiles report later on Wednesday. US stockpile levels are keenly monitored by investors as it is an indicator of demand in the world's largest economy and the biggest oil consuming nation.
Prices were also underpinned by a boost in demand for heating fuel following a record-breaking cold snap in North America. All of Canada and all US states bar tropical Hawaii recorded temperatures below freezing on Tuesday, even usually sunny and warm Florida and California.
The drastic drop in temperatures has been attributed to a shift in a weather pattern known as the "polar vortex", which has coincided with wind chill warnings across the eastern seaboard.


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