Oil production out of Saudi Arabia hasn’t slowed at all.
In March, production out of Saudi Arabia grew by 658,800 barrels a day to an average of 10.294 million a day, according to a report from Bloomberg News.
This production growth, Bloomberg notes, is about half the daily production that comes out of the US’ Bakken shale formation.
Bloomberg notes that figures compiled by OPEC, the international oil cartel of which Saudi Arabia is a member, showed that Saudi production actually grew by about half of what Saudi’s official figures indicated.
In early morning trade on Thursday following this news, West Texas Intermediate crude oil, which rallied to a fresh year-to-date high on Wednesday, was down about 1.6% to $US55.50 a barrel.
The price of crude oil is down about 50% over the last 9 months, a move that has been largely attributed to a global supply glut.
In recent weeks, however, the price of oil has begun to bounce back as the number of US oil rigs in use declines, leading to speculation that supply will ultimately be pressured again, though
US oil inventories are still at an 80-year high.