Saudi Arabia says ultra-low oil prices 'irrational'

London

THE world's biggest oil exporter Saudi Arabia declared this week that ultra-low oil prices were "irrational" as crude hit new 12-year lows under US$27 on the global supply glut.

The market's dramatic slump culminated on Wednesday with New York crude collapsing to US$26.19 per barrel - a point last seen in May 2003.

London Brent oil also skidded to US$27.10 - the lowest level since November of the same year.

Prices have since recovered somewhat to sit at US$31 heading into the weekend, but traders remain on edge after another rocky week.

Oil turned higher as Opec kingpin Saudi said the market had "overshot" itself, while traders also digested eurozone stimulus hopes and a weaker-than-e…