WTI crude is volatiole as Saudi Arabia sees market is well-supplied

West Texas Intermediate crude swung between gains and losses after Saudi Arabia, the biggest producer in the Organization of Petroleum Exporting Countries, said the global oil market is well-supplied.

Ali Al-Naimi, Saudi Arabia’s oil minister, said the nation will meet additional demand as geopolitical concerns dominate the market.

Oil prices rose yesterday for the first time in three days as government data showed stockpiles at the largest U.S. hub shrank to the lowest since February 2012.

The Middle East accounted for about 35% of global oil production in the first quarter of this year, according to the International Energy Agency. Syria borders Iraq, OPEC’s biggest producer after Saudi Arabia.

Stockpiles at Cushing, Oklahoma,  decreased by 639,000 barrels to 34.1 million, according to data from the Energy Information Administration yesterday. Supplies shrank for a 10th week, matching the longest stretch in almost two years.

Total inventories slid by 219,000 barrels, the EIA said. They were forecast to fall by 2.1 million, according to the median estimate of analysts. 

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