Saudis Plan to Boost Crude Output Again

Saudi Arabia, the world’s largest oil exporter, will raise its crude oil capacity to 8.5 million barrels per day at the end of this month, the Middle East Economic Survey said today.

The Nicosia-based oil industry newsletter, quoting Saudi Aramco sources, said in a report that the kingdom plans to keep output at that level in December.

Saudi Arabia began raising its crude output in August to help compensate for the loss of 4 million barrels per day of oil caused by Iraq’s Aug. 2 invasion of Kuwait.

The kingdom’s crude oil production, which was about 5.7 million barrels per day in August, climbed steadily to average 7.8 million in October, the publication said.

Saudi Arabia’s production is expected to average about 7.9 million barrels per day this month, it said.

The rise in Saudi production since Iraq invaded Kuwait covers about 75% of the oil lost to the market due to the U.N. embargo on trade with Iraq and Kuwait.

Apart from Saudi Arabia, other members of the Organization of Petroleum Exporting Countries boosted output after the group said in August that members were free to produce as much as they want.

The oil industry publication said that despite the decline in crude supply, the kingdom was unable to sell 150,000 barrels per day of its heavy crude in October because its price was unattractive.