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Saudi Arabia to Increase Oil Production
Saudi Arabia intends to put 500,000 additional barrels of oil on the market every day starting immediately to try to get soaring prices down to $25 a barrel, an official from an OPEC delegation told the media Monday. The source, speaking on condition of anonymity,said the Saudis were acting because they were the only producers with enough reserves to increase production. He also said the Saudis would move to decrease production if prices fell below $25. Prices are now hovering around $30 a barrel. Saudi Arabia, the world's largest oil producer and exporter, had reportedly been trying to persuade other producers to raise exports above and beyond the additional 708,000 daily barrels agreed to at a meeting in Vienna last month of the Organization of Petroleum Exporting Countries. Industry analysts reacted skeptically to the possibility the Saudis would increase production unilaterally.
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