SINGAPORE: Crude prices fell in Asia on Monday following a report saying Saudi Arabia could maintain its total production capacity with the expansion of an oilfield, fuelling fresh concerns about the global supply glut.
The losses come after a week of strong gains in the commodity that came on the back of hopes for the outlook for China’s economy and speculation about the resumption of talks on limiting output.
Saudi Arabian Oil Co. will complete an expansion of its Shaybah oilfield by the end of May, allowing the world’s largest exporter to maintain total capacity at 12 million barrels a day, Bloomberg News reported.
The move will see Shaybah’s capacity rise from 750,000 barrels to 1 million barrels a day, the report said.
At about 6:30 a.m. local time, US benchmark West Texas Intermediate (WTI) for delivery in June was down 41 cents, or 0.94 percent, at $43.32 and Brent crude for June dropped 28 cents, or 0.62 percent, to $44.83.
Prices tumbled initially last Monday after the collapse of a meeting of major producers aimed at freezing output.