FT Alphaville » Saudi oil puzzle, continued

From the commodities research team at Goldman Sachs on Wednesday:

Saudi Arabian crude oil inventories built by 35.4 million barrels in the December-February period, adding 390 thousand b/d to world oil demand, according to data from the Joint Organisations Data Initiative (JODI). The strong build in Saudi inventories raises a number of questions, however. The foremost question being: why would Saudi Arabia increase its oil production to the highest level in over 30 years to simply put the crude oil into storage?

It would appear that Saudi Arabia — the central bank of oil — is pumping oil at the highest rate in nearly 30 years just to put the crude oil into storage.

* username: rupertbu