Saudi Arabia on Monday declared its readiness to boost crude oil output to 11 million bpd if world market faces any shortage in oil supplies as a result of Hurricane Katrina.
“We are closely monitoring the impact of Hurricane Katrina on US crude oil supplies, refining activity and oil prices,” said Minister of Petroleum and Mineral Resources Ali Al-Naimi. “We continue to be in close contact with our customers, especially those in the US, to assist them during any shortfall in oil supplies,” the Saudi Press Agency quoted the minister as saying.
Al-Naimi said the Kingdom was prepared to raise its crude oil production immediately.
“Upstream expansion plans to increase production capacity to 12.5 million bpd are well underway to ensure Saudi Arabia’s continued commitment to maintaining adequate global crude oil supplies,” he stated.
Oil prices surged to a record of about $70 a barrel.