Saudi Arabia, the world's largest oil exporter, will raise production capacity from about 9.5 million barrels a day to 11 million barrels daily in an attempt to rein in prices that topped US$50 a barrel for the first time, Oil Minister Ali Naimi said yesterday.
By increasing its capacity, Saudi Arabia will be able to raise production when it wants. A Saudi oil ministry official, speaking on condition of anonymity, said that the kingdom would increase production, "depending on demand."
"In light of the recent developments in the oil market and the increase in prices that exceeded US$50 ... Saudi Arabia is closely monitoring the developments in the international oil market and is working on stabilizing that," Naimi said.
Yesterday's announcement came as crude oil topped US$50 per barrel during Asian trading, pushing past the psychological milestone for the first time.
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