Saudi Mar Oil Output Down 0.25 Million B/D On Mo At 8.95 Million B/D

LONDON -(Dow Jones)- Saudi Arabia’s March oil production fell 250,000 barrels a day on the month to 8.95 million b/d as the kingdom was slow to lift supplies to meet unexpectedly strong demand, preliminary data from leading tanker tracker Petrologistics said Thursday.

“The Saudis were afraid of stocks going up and prices coming down,” Petrologistics President Conrad Gerber told Dow Jones Newswires. “They were taken by surprise and it wasn’t easy for them to reverse mid-month,” he added.

Saudi Arabia’s crude output for February was revised down to 9.2 million b/d – a drop of some 300,000 b/d from earlier data, Gerber said.

The drop in Saudi supplies in March meant that OPEC output was unchanged on the month at 29.3 million b/d according to revised estimates for February.

“It was unchanged because any increases were outweighed by a drop in production in other countries,” Gerber added.

Last week, OPEC raised its production ceiling by 500,000 b/d to cool record high oil prices. The group said it could start talks on another half a million b/d hike this week if prices stayed high.

However, U.S. oil prices began falling from recent record highs of over $57 a barrel earlier this week as crude stocks showed unexpectedly large builds and funds began to liquidate positions.

An explosion at a BP Plc (BP) refinery in Texas late Wednesday kept prices from falling too much further and U.S. crude futures are now trading around $54/ bbl.

Meanwhile, Iraqi oil output was up 100,000 barrels a day in March at 1.86 million b/d as better weather allowed more vessels to load, Gerber said.

Kuwaiti oil supplies were up 100,000 b/d at 2.45 million b/d in March as gas processing center 15 came on line. Algerian production was at 1.3 million b/d as the North African country took advantage of high oil prices and Nigeria was unchanged at 2.35 million b/d, Gerber said.

-By Selina Williams, Dow Jones Newswires, +44 207 842 9262; selina.williams@ dowjones.com

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