Statements from a member of OPEC again swayed oil markets Wednesday, with Saudi comments on demand driving Brent crude prices upward.
Brent crude oil prices have see-sawed since early February momentum drove markets well beyond the perceived floor of around $45 per barrel. Brent prices are up 1.6 percent for the week and are within sight of the $60 per barrel mark.
Brent fluctuated in trading earlier this week after the Nigerian oil minister told the Financial Times an extraordinary meeting for members of the Organization of Petroleum Exporting Countries may be in the planning stages. Analysts, however, shrugged off the statements, noting it's Riyadh that holds major influence over the 12-member group.
Riyadh had defended its decision to keep oil production levels static despite weak prices by saying it needed to ensure it was maintaining its position in the global oil market.
Saudi Arabia Oil Minister Ali al-Naimi said Wednesday there was no reason for knee-jerk reactions, noting markets are "calm" and oil demand was growing.
That was enough to add further support to Brent crude oil, which was trading up 1.3 percent from the previous session to $59.45 per barrel for the April contract early in the Wednesday session.
Oil prices dropped off dramatically since June as markets pivoted toward the supply side in part because of increased production from the United States. In its latest report, the U.S. Energy Information Administration said total crude oil production for 2016 should be 2.1 percent above the estimated 9.3 million barrels per day for this year.
The price for West Texas Intermediate crude oil, the U.S. benchmark, was relatively unchanged from the previous trading day to sell for $49.36 per barrel early in the Wednesday session.
