INV: Oil collapses after OPEC report shows jump in Saudi output
Investing.com - Oil prices reversed overnight gains during North American morning hours on Tuesday, falling to a fresh four-month low after a report showed Saudi Arabia raised output back above 10 million barrels a day in February, underlining concerns over a global supply glut.
The U.S. West Texas Intermediate crude April contract sank to a session low of $47.66 a barrel, a level not seen since November 30. It was last at $47.80 by 8:30AM ET (12:30GMT), down 60 cents, or around 1.2%.
Elsewhere, Brent oil for May delivery on the ICE Futures Exchange in London dipped 50 cents to $50.85 a barrel. The global benchmark touched a session low of $50.61 earlier, its cheapest since November 30.
In its monthly oil market outlook released earlier, OPEC said its members pumped 31.95 million barrels per day in January, down 139,500 barrels per day from January.
However, Saudi Arabia boosted production by 263,300 barrels a day to 10.011 million a day, reversing about a third of the cuts it made the previous month.
January 1 marked the official start of the deal agreed by OPEC and non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day to 32.5 million for the next six months.
Kuwait is scheduled to host a ministerial meeting on March 26 comprising both OPEC and non-OPEC members to review compliance with the output agreement and to discuss whether cuts would be extended beyond June.
Investors now looked ahead to weekly data from the U.S. on stockpiles of crude and refined products.
Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (20:30GMT) later on Tuesday. Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock rise of 3.2 million barrels.
Last week's numbers showed U.S. output helped boost crude inventories to record highs, feeding concerns about a global glut.
Elsewhere on Nymex, gasoline futures for April shed 0.2 cents, or around 0.2%, to $1.492 a gallon, while April heating oil slipped 0.9 cents to $1.491 a gallon.
Natural gas futures for April delivery declined 1.6 cents to $3.027 per million British thermal units.