Saudis planning July oil output increase: report
Reuters
Published: Friday, June 13, 2008
NEW YORK - Saudi Arabia plans to increase its oil output in July by some half-million barrels a day, a sign the country is growing concerned about the impact of high crude prices on the global economy, The New York Times reported.
Citing analysts and oil traders briefed by Saudi officials, the Times said in its Saturday editions the plans by the world's largest oil exporter had been privately disclosed recently by Saudi officials. The analysts declined to be identified for fear of being cut off from information from the Saudis in future.
"We would welcome any and all increases in oil production, including from Saudi Arabia," White House spokesman Tony Fratto told the newspaper. President George W. Bush pressed for increased production in two visits to Saudi Arabia earlier this year.
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The increase, which the Times said may be made public as early as next week, could put the Saudis' output at 10 million barrels a day, which would be its highest-ever output if sustained, the Times said. The current level is 9.45 million barrels daily.
The move was seen as an indication Saudi Arabia was nervous about the political and economic impact of higher oil prices, the report added, with oil demand dropping in developing countries, including the United States.
Oil prices have risen 40 per cent to nearly $140 a barrel this year, causing record U.S. gasoline prices, and some analysts forecast $200 a barrel prices this year.
"This clearly represents the biggest test for them," the newspaper quoted John Kilduff, a senior vice president at the brokerage firm MF Global, as saying, as the move could backfire if investors fail to respond to the extra supplies.
© Reuters 2008 |
