Oil prices drop as Saudi Arabia raises output
Oil prices have kept falling as top producer Saudi Arabia refuses to heed calls to cut output to help balance the fluctuating market.
On Tuesday, North Sea Brent crude oil futures were trading at $55.58 a barrel at 0301 GMT, down 34 cents. US West Texas Intermediate (WTI) crude was down 48 cents to $46.97 a barrel.
The fresh drop in oil prices came after Saudi Arabia, OPEC's biggest producer, announced it is producing roughly 10 mb/d of crude oil, some 350,000 b/d above the official figure provided to the 12-member Organization of the Petroleum Exporting Countries in February.
"The market was under pressure early in the trading day after comments from Saudi Arabia that it was producing almost 10 million barrels per day," ANZ bank said on Tuesday.
On Monday, Saudi Oil Minister Ali al-Naimi said the Arab kingdom has the capacity to supply crude to any new client.
He also said that non-OPEC countries should also help curb the downward trend in the prices.
"We refuse to take responsibility alone because (OPEC) produces 30 percent of market output and 70 percent comes from outside," al-Naimi said.
Oil prices fell around 60% between July 2014 and February this year.
The Saudi minister cited the 1998 crash, saying OPEC cooperated with other oil producers to cut output and shore up oil prices.
"Today, the situation is difficult. We tried, met with them but did not succeed because they insisted that OPEC should take the responsibility alone," said Naimi.
"All must contribute if we want to improve prices because it is in the interest of all," the Saudi minister said.
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