Oil Prices Drop to New 2017 Low

Oil prices have fallen after the OPEC said global crude stocks had risen.

A surprise output jump from Saudi Arabia, OPEC’s biggest member, put further pressure on prices.

Gains made since OPEC announced output cuts in 2016 have nearly all been erased.

Saudi Arabia said it was “committed” to stabilizing the global oil market, and that its output was still in line with its OPEC target.

OPEC said in its report: “Despite the supply adjustment, stocks have continued to rise, not just in the US, but also in Europe.

“Nevertheless, prices have undoubtedly been provided a floor by the production accords.”

In February, Saudi Arabia’s production increased to 10.011 million barrels per day, compared with 9.748 million barrels per day in January.

Saudi Arabia’s energy ministry said the country “is committed and determined to stabilize the global oil market by working closely with all other participating OPEC and non-OPEC producers”.

Oil prices fell after the release of the OPEC report to trade close to $50 a barrel, their lowest since November.

Crude prices are still higher than $40 per barrel a year ago and a 12-year low of about $28 in January 2016.

Brent crude oil price settled about 0.5% down at $51.09 per barrel, while US crude was at $47.90.