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Saudi Arabia is ready to reduce its crude oil output by up to 4 million barrels per day from April level, Reuters reported on Thursday, citing a source briefed on Saudi Arabia’s policy.

“Saudi Arabia insists it can cut oil output only from newly achieved production levels of 12.3 million barrels per day,” the source further added.

Market reaction

Crude oil prices fell sharply on this headline and the barrel of West Texas Intermediate was last seen trading at $25.90, erasing 0.75% on a daily basis.