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Sunday, 9 October 2011

Saudis See No Reason to Raise Oil Output Capacity - WSJ.com

A senior oil executive said Saudi Arabia is unlikely to proceed with plans to raise its oil output capacity to 15 million barrels a day, as expansion plans in other producing countries such as Iraq and Brazil should be enough to satisfy world markets.

"There is no reason for Saudi Aramco to pursue 15 million barrels [of output capacity]," Saudi Arabian Oil Co. chief executive Khalid Al Falih said in an interview Saturday.

"It is difficult to see [an increase in capacity] because there are too many variables happening," he said. "You've got too many announcements about massive capacity expansions coming out of countries like Brazil, coming out of countries like Iraq. The market demand is addressed by others."