Oil added a few cents on Wednesday as the market balanced on expectations of the U.S. government’s weekly inventory report and the Fed outlook for the US economy. The IEA report is due to be released today at 10.30 a.m. EST.

March crude rose $0.14 to $47.40 a barrel.

Analysts expect that US oil inventories added 1 million barrels in the week ended Feb. 11 from 294.3 million the previous week on an inflow of imports.

"Everybody has a different view on today’s data. A lot of people will also be watching Greenspan to find out what’s really going on with the U.S. economy," said Mark Waggoner, president of California-based Excel Futures. "I think prices will stay both sides of unchanged for the moment, assuming nothing happens in the Middle East," he said.

Warmer weather and the quick approach of spring put downward pressure on oil prices.

Yesterday OPEC gave a signal that it is contemplating a possible cut in supply came from the cartel’s acting Secretary-General Adnan Shihab-Eldin who said that OPEC might need to cut output for the second quarter even on stable demand and envisages a steeper cut if demand falters.

"OPEC keeps out there the potential for a production cut, which keeps the market well-supported," said John Brady at ABN AMRO in New York.

On Monday Iraq resumed its northern oil exports that were interrupted by attacks in December.