(MEBG) – As it promised last month, Saudi Arabia has started pumping extra oil, an Opec source told the Khalij Times on July 15. He did not say how much more oil the kingdom was producing, although several countries inside Opec fear that it is large enough to lead to a sharp price reduction.
Oil traders in Asia confirmed they had been told to expect more Saudi oil in August, when the additional oil would likely reach the markets.
But there are mixed signals. Opec President Ali Rodriguez has said that Saudi Arabia would not increase current output unless it got approval from Opec partners. He added that other Opec producers felt the time was not ripe for an immediate increase.
Opec's official overall output is 25.4 million barrels a day, about a third of which comes from Saudi Arabia.
Opec is scheduled to meet in Vienna, Austria, on September 10. Saudi Arabia is believed to have been lobbying for an emergency Opec meeting next week, but Iranian Oil Minister Bijan Namdar Zanganeh said Rodriguez and Iran had both agreed that there was no need for such a meeting.
© 2000 Mena Report (www.menareport.com)
