Analysts at S&P Global Platts expect US crude oil inventories to have fallen by 3.2 million barrels in the week ended May 26.
Brent crude futures for July fell $1.53, or 3.0 percent, to settle at $50.31 a barrel on their last day as the front-month.
US crude futures extended gains after the data and was 1.4 percent, or 68 cents, higher at $49 a barrel, as of 11:33 a.m. EDT (1533 GMT).
Still, oil markets received some support from official United States of America data that showed the country's crude inventories fell sharply last week as refining and exports surged to record highs.
Crude inventories fell 6.4 million barrels in the week to May 26, far more than analysts' expectations for a decrease of 2.5 million barrels.
The data added to concerns over a global supply glut as US shale oil drilling continues to climb.
Oil prices fell on Wednesday, as rising output from Libya added to concerns about increasing USA production that is undermining Opec-led production cuts aimed at tightening the market.
Tensions in West Asia, where top oil exporter Saudi Arabia cut ties with top liquefied natural gas (LNG) shipper Qatar over concerns about terrorism and extremism, also pushed up crude futures, traders said.
Output from the Organization of the Petroleum Exporting Countries (OPEC) rose in May, the first monthly increase this year, a Reuters survey found.
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Libya's oil production is expected to regain a three-year production peak of 800,000 bpd this week, the National Oil Corporation said, after briefly touching that level this month until a technical issue at Sharara oilfield dented output.
Despite this, Brent futures are still more than 8 per cent below their level on May 25, when OPEC announced it would extend its production cut into 2018.
The nation with Africa's biggest crude reserves pumped as much as 1.6 million barrels a day before an uprising in 2011, and it was exempted from OPEC's cuts due to internal strife.
Surging U.S. production has put a strain on OPEC members' efforts to curb production cuts in a bid to drain a global crude supply overhang and to prop up prices.
"The market was just hoping for another surprise", said Emily Ashford, director of energy research at Standard Chartered, "and was just disappointed that they didn't go any further", reports Fox Business.
"This could lead to a drilling free-for-all in the USA and also see other signatories waver in their commitments", said Jeffrey Halley, senior market analyst, OANDA.
However, U.S. crude production is rising fast as new technology helps to extract shale oil, making the United States more self-sufficient in energy.
Meanwhile compliance with the OPEC-led deal remained high among the group's members, with industry sources saying that Russian figures for May also show output in line with its pledge.
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