An oil well pump jack is seen at an oil field supply yard near Denver, Colorado February 2, 2015. Reuters/Rick Wilking
Reuters: Oil dives 6 percent from 2015 high as stocks swell, Saudis pump
(Reuters) - Oil prices dived 6 percent on Wednesday after closing at their highest this year, as a mammoth rise in U.S. crude stockpiles and news of record Saudi oil production scuttled talk of a sustained recovery.
U.S. crude oil inventories surged 10.95 million barrels - three times more than expected - to a modern-day record 482.39 million last week, U.S. government data showed, the biggest one-week increase since 2001. Stockpiles in Cushing, Oklahoma, rose by 1.2 million barrels, much more than expected.
The data added to earlier losses triggered by comments that Saudi oil production rose to 10.3 million barrels per day (bpd) in March, the highest monthly total on record.
WNU Editor: The Saudis are sending a message, and to curry favor among the West/China/Japan/etc. in their war on Yemen, and in their long term battle with Iran. In short .... my impression is that the Saudis are now trying to buy allies, and they are doing it by providing cheap oil to nations who are dependent on oil.
Update: This news is a surprise .... Saudi 'to borrow to finance soaring deficit', says report (AFP).
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