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UN chief: Saudi Arabia to increase daily crude output by 200,000 barrels
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17:19, June 16, 2008

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UN chief Ban Ki-moon said on Sundaythat Saudi Arabia had pledged another crude output increase in July to meet rising demand in the world market.

Saudi Arabia, the top producer of the Organization of the Petroleum Exporting Countries (OPEC), has promised to raise its daily output by 200,000 barrels in July, Ban said after a visit tothe country.

The oil powerhouse has said it would increase output by 300,000barrels a day in June during a visit by U.S. President George W. Bush's last month.

On the flight to London after a visit to Riyadh, Ban told reporters that he had just spoken to Saudi Oil Minister Ali al-Naimi by telephone, who told him about the new production hike.

"The Saudis did increase production in June by 300,000 barrels.For the month of July, it will be an increase of 200,000 barrels more in response to requests from customers," Ban said, citing hisconversation with al-Naimi.

"They (the Saudis) will respond positively whenever there is a request from their customers, so there is no shortage," he added.

The two increases will bring Saudi's daily oil output to 9.7 million barrels, a record high since August 1981.

Major oil consuming countries like the United States have led the outcries for more crude as oil prices continued soaring, once topping 139 U.S. dollars a barrel, since the beginning of the year.

OPEC officials have repeatedly turned down the request, citing weak dollars, speculation, political instability, instead of supply woes, should be responsible for the price hikes.

Source: Xinhua



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