Saudi Arabia Boosts Oil Supply; Doubt Over Price Drop

Saudi Arabia, the world's biggest oil exporter, plans to raise production for a third-straight month in July and make further increases as needed to curb record prices. The kingdom will raise daily crude output by 200,000 barrels to 9.7 million barrels next month, Saudi Oil Minister Ali al-Naimi told officials from 35 producing and consuming countries at a summit yesterday in the Red Sea port of Jeddah. OPEC President Chakib Khelil and ministers from Venezuela and Libya said the Saudi initiative would fail to lower prices, blaming oil's climb above $130 a barrel on speculation, rather than a lack of crude.

``Markets are a bit disappointed,'' Mike Wittner, Societe Generale SA's head of oil research in London, said today in an interview. ``Another 200,000 barrels a day is not a whole lot. Especially if you compare to a week ago when the first news was a possible 500,000 increase.'' (Read more..)


Source : Bloomberg