Late Tuesday, the American Petroleum Institute, an industry group, reported a 1.8-million-barrel jump in USA stockpiles and a 2-million-barrel rise in gasoline stockpiles.
But even though rising prices is precisely what many OPEC members want in order to bolster their ailing economies, the consequences of these prices are not pleasing Sinopec of China, Asia's largest refiner, which plans to cut Saudi oil imports loading in May by 40 percent in response to Saudi Aramco setting higher-than-expected prices.
An oil pumpjack is seen in Velma, Oklahoma U.S. April 7, 2016.
Oil found support from news reports that said Saudi Arabia's air defense system shot down a Houthi missile over Jazan.
Oil prices closed at a three-year high on Thursday, reversing losses as traders gauged rising geopolitical risks in the Middle East against higher production in other parts of the world.
The market is also keeping an eye on developments out of Syria, after reports an air base near Homs was struck by missiles. The Energy Information Administration will also release its monthly short-term energy outlook report Tuesday and weekly USA petroleum-supply data Wednesday. Buhari also proposed an oil price benchmark of $45, exchange rate of N305/$1, oil production target of 2.3 million barrels/day, inflation rate of 12.4 per cent, and a gross domestic product (GDP) growth of 3.5 per cent.
However, remarks from China's foreign ministry and a tweet from Trump have suggested that the dispute could easily heat up again. That was the highest finish for the most active contract since December 1, 2014, according to FactSet.
Oil prices settled higher Monday, to recover much of what they lost last week, as U.S. WTI is about 2 percent below its 2018 peak of $66.66.
Despite oil's price spike after the rocket over Riyadh, the market remains focused on fundamentals, said Abhishek Kumar, senior energy analyst at Interfax Energy's Global Gas Analytics in London.
OPEC, together with Russian Federation and a group of other producers, last November extended the output cuts to cover all of 2018. Analysts polled by S&P Global Platts forecast a 100,000-barrel increase in stockpiles and a 2 million-barrel decline in gasoline stockpiles.