Saudi Arabia Discusses Production Increase with other Oil Producers
Saudi Arabia is talking to other producers about pumping more oil in the next few weeks in a bid to bring down prices now at about $30 a barrel, reported The Associated Press, quoting Saudi oil official.
The official said the target was $25 a barrel.
Saudi Arabia alone has excess production capacity of 2.3 million barrels per day, which can be put on the market in a short period of time if necessary, the official said.
At a meeting in Vienna last month, the Organization of Petroleum Exporting Countries agreed to increase output by 708,000 barrels a day starting last Saturday, said the agency.
But since the announcement, oil prices have continued to rise.
The open-market value of the basket of seven crude oils used by OPEC as a gauge of world oil price levels, averaged $30.10 a barrel Thursday, up from $29.58 on Wednesday, OPEC said Friday.
The Saudi economy is 70 percent dependent on oil revenues. Officials fear they will be hurt in the long run if prices remain high, the AP said.
They need stable prices to plan spending, and high prices could reduce demand and spur consumers to turn to alternative fuels.
OPEC oil ministers are set to meet in Vienna in September. They are not expected to take decisions on oil output before then, the agency said - Albawaba.com
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