Oil has tumbled after Saudi Arabia says it increased production.
WTI crude, the US benchmark, is down by 0.9% at $US47.99 per barrel as of 8:01 a.m. ET. This is the lowest level since late November.
Meanwhile, Brent crude oil, the international benchmark, is down by 0.5% at $US51.08 per barrel. Again, this is the lowest level since late November.
Oil’s tumble follows the release of a monthly report by OPEC, which shows that Saudi Arabia increased production in February back above the level of 10 million barrels per day (to 10.011 million a day, to be exact), according to figures submitted by the Kingdom itself. We first spotted this via a tweet from Bloomberg’s Javier Blas.
Notably, back on November 30 when OPEC collectively agreed to cut production, the Saudis agreed to cut to 10.058 million bpd. In other words, this latest increase still keeps production at a number below the one to which they agreed.