Oil slipped on Wednesday after U.S. industry data showed a bigger-than-expected build in crude stockpiles, but possible deeper production cuts coming from OPEC and its allies prevented a further slide in prices.

International benchmark Brent crude futures dropped 28 cents, or 0.47%, to $59.42 a barrel by 01:23 GMT on Wednesday. West Texas Intermediate (WTI) crude futures fell 40 cents, or 0.73%, to $54.08 per barrel.

U.S. crude stocks rose by 4.5 million barrels to 437 million barrels in the week ended Oct. 18, compared with analyst expectations for a gain of 2.2 million barrels, data from industry group the American Petroleum Institute showed.

Inventory data from the U.S. Energy Information Administration (EIA) is due later on Wednesday.

Source : Reuters