The energy minister of Saudi Arabia said on Thursday he was optimistic about Opec's deal to limit oil output and mentioned the lower end of a previously agreed production target, helping spur a rally in the price of crude.
Oil prices jumped over 2% on Monday on growing Nigerian oil output disruptions and Goldman Sachs said the market had ended almost two years of oversupply and flipped to a deficit.
Saudi Arabia's oil output will edge up close to record highs in coming weeks to meet summer demand for power but is unlikely to be pushed to the limit and flood global markets, Saudi-based industry sources said.
Oil prices rallied after Kuwait said an agreement to freeze output during a producers' meeting this month could still be reached despite conflicting statements by participants.
Opec oil output is rising in March, a Reuters survey found, as higher supply from Iran after the lifting of sanctions and near-record exports from southern Iraq offset maintenance and outages in smaller producers.
Iran has increased oil exports by 500,000 barrels per day since international sanctions against Tehran were lifted in January, a top official said on Saturday.