Oil Drops After Saudis Tell OPEC They Reversed Some Output Cuts

Oil reversed earlier gains after Saudi Arabia told OPEC it raised output back above 10 million barrels a day in February, reversing about a third of the cuts it made the previous month.

Futures fell 0.6 percent in New York after losing 9.2 percent the previous six sessions. The kingdom, which had curbed supplies more than it needed in January to lead the way in an accord to re-balance world markets, told OPEC it boosted production by 263,300 barrels a day last month, a figure that jarred with the group’s own estimate that Saudi production fell further.

West Texas Intermediate for April delivery was at $48.13 a barrel on the New York Mercantile Exchange, down 27 cents, at 12 p.m. in London. Total volume traded was about 18 percent below the 100-day average. The contract fell 9 cents to $48.40 on Monday, the lowest close since Nov. 29.

Brent for May settlement was 23 cents lower at $51.12 a barrel on the London-based ICE Futures Europe exchange. The global benchmark traded at a premium of $2.47 to May WTI.

At 10.011 million barrels a day, Saudi output is still below the ceiling of 10.058 million a day imposed by the agreement, according to the OPEC report. Production data that the group derives from external sources, such as news agencies, showed Saudi output falling by 68,100 barrels a day to 9.797 million a day. The group as a whole got closer to full implementation of the cutbacks, with output falling in February by 139,500 barrels a day to 31.958 million a day.
more at: https://www.bloomberg.com/politics/articles/2017-03-13/oil-holds-below-49-as-u-s-stockpile-rise-dampens-opec-cuts

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