BZ:Saudi Arabia Raises Oil Production to Lower Prices
Saudi Arabia has been increasing crude oil production to offset the recent hike in prices, the Financial Times reported Monday.
According the Times report, "The kingdom boosted production in May by about 200,000 barrels a day and it is on course to increase it by another 200,000-300,000 b/d this month, taking its output above the critical 9m b/d level for the first time since mid-2008. The rise comes as the seasonal refining maintenance seasons ends, increasing global demand for oil."
Oil prices have fluctuated around the $100 a barrel in recent months, above the $75-$80 range that OPEC typically aims for.
Rising Asian energy demand has been a contributing factor to high oil prices and will likely be on the agenda when OPEC members meet in Vienna on Wednesday.
The Times report notes that "The group, which controls about 40 per cent of global crude oil supplies, will consider on Wednesday the first increase in its production quotas – or the official output levels – in almost four years amid political tension in the Middle East."
Gas prices for midwestern U.S. consumers have fluctuated in the $3.60-$4.20 range in recent months. Oil is currently trading at $99.01 a barrel.
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