US crude falls as Saudi reports record production
U.S. crude futures fell over a dollar in early Asian trading on Wednesday after Saudi Arabia revved up crude production to its highest level on record in March.
Oil Minister Ali al-Naimi told reporters late on Tuesday that the Kingdom produced some 10.3 million barrels per day (bpd) of crude in March, a figure that would eclipse its previous recent peak of 10.2 million bpd in August 2013, according to records going back to the early 1980s.
Naimi did not say why production had increased last month. He said in the speech in Riyadh that the Kingdom's output would likely remain around 10 million bpd.
Ali al-Naimi also said that the kingdom stood ready to "improve" prices but only if other producers outside of the Organization of the Petroleum Exporting Countries (OPEC) joined the effort, which has so far not been the case.
Wednesday's price fall came after crude oil prices rallied the previous session and U.S. crude approached 2015 highs on strong jobs data and government forecasts for lower U.S. crude production growth and higher global demand for oil.
Nymex crude for May delivery was down $1.09 at $52.88 a barrel by 2349 GMT. It settled up 3.53 percent, or $1.84 a barrel, at $53.98 on Tuesday.
The U.S. dollar index (New York Board of Trade (Futures): =USD), which measures the greenback against a basket of currencies, rose 1.22 percent on Tuesday, resuming a recent upward trend and weighing on crude prices as the strong greenback makes oil imports more expensive for countries dealing in other currencies.
More From CNBC