Analysts warned of more supply as Saudi Arabia and Iran seemingly ramp up output in a race for customers, further flooding the market with excess supplies.
Saudi Arabia announced that it will complete an expansion of its Shaybah oil field by June, pushing capacity to 12 million barrels per day.
Iran oil production has now increased by 1 million bpd since the beginning of the year,
while Kuwait is expecting output to reach 3.15 million bpd by June after the end of a workers strike," ANZ bank said.
Iran wants to get back to pre-sanction production of 4 million bpd.
"The biggest bear risk to the oil market right now is that Iran's ramp-up accelerates and then that Saudi Arabia does the same,"
Just hours ago the Saudi Arabia's cabinet has agreed on a broad-based economic reform plan, known as Vision 2030, revealing how the oil-reliant state plans to diversify its economy over the next 14 years.
Prince Mohammed bin Salman, the deputy crown prince, said on Monday that the country was building up the its Public Investment Fund to become a major player in global markets. He said Saudi Arabia
was restructuring its housing ministry to increase the supply of affordable housing, and creating a "green card" system within five years to give expatriates long-term residence.
"Almost 10 million foreigners send their money back to their country, they can't invest in this country, so by this green card idea, we are giving more rights to expats for investment or buy houses," he said.
"That will create a big move for the Saudi economy. It is a visionary kind of move to not only help the Saudi economy and Saudi citizens but also help the foreigners in the country."
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