Oil prices rose above $49 a barrel on Wednesday on fund activity in buying crude oil, although gains were contained by yesterday's promise by Saudi Arabia to keep pumping at full throttle despite the surge in US stockpiles.
The funds took an opportunity to replenish their funds that were reduced due to massive selling when prices were at their peak of $58.28 a barrel in early April.
If today's report from the U.S. Energy Information Administration, as expected, shows another increase in stockpiles, this will be the 13th rise in 14 weeks.
"If stocks were to fall, prices could shift above $50 a barrel," said David Thurtell, commodity strategist with Commonwealth Bank of Australia. "People do not want to be in a short position."
However, prices are still getting upward pressure from concerns about the peak in demand at the time of the US driving season.
The markets reacted with a slide in oil prices to the declaration of Saudi Arabia that it will continue to pump at the current level.
"One of the reasons inventories are built is to anticipate fourth-quarter demand. In the fourth quarter, there's no question that production will increase," Saudi Oil Minister Ali al-Naimi said in Washington on Tuesday.