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US crude inventories fell by 1.8 million barrels in the last week as refineries raised production, compared with analysts' expectations of a decrease of 67 000 barrels.
But a supply glut in delivery hub Cushing, Oklahoma, persisted, rising by 1.995 million barrels, amid higher product stocks, EIA data showed.
"Nothing has changed on the supply side. Unless there are some supply cuts, oil markets can't be strong at the moment," said Ken Hasegawa, commodity sales manager at Tokyo's Newedge Japan.
February Brent crude was up 17 cents a barrel at $57.50 as of 07:27 GMT but that was more than $1 down from the day's high at $58.54.
Front-month US crude for February delivery was up 38c a barrel from Wednesday at $53.65, after reaching an intraday high of $55.11.
Markets were shut on Thursday for the New Year holiday.
Oil prices have fallen by half from last year's peak to a five-and-a-half year low under pressure from a global glut of crude, exacerbated by the refusal of the world's top oil exporter, Saudi Arabia, to trim supply.
Falling world oil prices will hurt countries across the Middle East unless the oil swing producer acts to reverse the slump, Iran's deputy foreign minister told Reuters.
Oil prices may also have retreated after news that an Enbridge crude oil storage facility in North Dakota had apparently escaped damage from a nearby fire that had alarmed the market earlier.
Adding to the supply pressures, the US government has taken steps that could open the way for more US condensate, or ultra-light crude, to be exported.
Weak China data
The jump in oil prices early on Friday was capped by surveys showing weak factory activity in China in December, which underlined the challenges facing the country's manufacturers as they fight rising costs and softening demand in the world's second-largest economy.
China's official purchasing managers' index slipped to 50.1 in December from November's 50.3.
READ: China data suggest economy cooling further
"We have to see China's data in totality, but this time, the PMI data is not good," Hasegawa said. "This means the recovery in China and the rest of Asia will take more time."
