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Saudi oil production hits highest level despite oversupply

File photo of Saudi Oil Minister Ali al-Naimi

Saudi Arabia’s oil production has hit a record-high level despite a crude oversupply on the market and low oil prices.

The Saudi oil output reached 10.3 million barrels per day in March, Oil Minister Ali al-Naimi said. The figure is the highest on record.

"Average daily output hit 10.3 million barrels per day (bpd) in March," Naimi, cited by the official Saudi Press Agency, said Tuesday night.

That is up 450,000 bpd from February and comes at a time of increasing competition for market share and as oil prices continue to drop.

The highest previous record was registered in 1980, at 10.285 million bpd, according to the US Energy Information Administration.

Naimi expected the Persian Gulf kingdom's production to continue at around 10 million bpd and also expected crude prices to improve.

An onshore Saudi oilfield development (file photo)

This is while oil prices fell Wednesday on profit-taking after the previous day's sharp gains, while traders expected another rise in US crude inventories.

US benchmark West Texas Intermediate (WTI) for delivery in May declined $1.13 to $52.85 a barrel.

Brent North Sea crude for May dropped 69 cents to stand at $58.41 a barrel around midday.

The US Energy Information Administration will release its stockpiles report, a closely watched barometer of demand in the world's top oil consuming nation, later Wednesday.

GHN/GHN


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