Oil turned positive in price as the clock approached noon on Wednesday, shaking off negative Saudi comments to move higher on technical trading and mixed U.S. demand data.
Saudi Oil Minister Ali al-Naimi said Tuesday production cuts would not happen, though more countries would join a deal to freeze output.
OPEC and non-OPEC producers who support the idea are planning a mid-March meeting, his Venezuelan counterpart said.
But prices gathered steam at midday. Brent crude was up $1.07 at $34.34 U.S. a barrel. U.S. crude rose 39 cents to $32.26 U.S. Both dropped more than 5% in intraday trading on Tuesday.
Data from the Energy Information Administration showed Wednesday that U.S. crude stocks rose last week while gasoline inventories fell for the first time since November.
EIA numbers showed crude inventories increased by 3.5 million barrels in the last week to a total of 507.6 million, compared with analysts' expectations for an increase of 3.4 million barrels. Gasoline stocks fell by 2.2 million barrels, compared with analysts' expectations in a Reuters poll for a million-barrel drop.
The EIA added that crude stocks at the Cushing, Oklahoma, delivery hub rose by 333,000 barrels.
The American Petroleum Institute, an industry group, said on Tuesday crude inventories rose by 7.1 million barrels last week.
