Saudi Arabia IS boosting output | FT Energy Source | FT.com
One of the big questions as oil prices hover above $80 — prompting all kinds of concerns – is what Saudi Arabia will do.
The country’s oil minister, Ali al-Naimi, has been talking up the price range of $70 - $80 for many months now, declaring it to be ‘beautiful’ and ‘perfect’. Saudi Arabia is the only country with significant spare production capacity, and it’s also very alert to the risk of high prices destroying demand.
Well, it seems to be* walking the talk. Surveys of Opec output for April show that Saudi went substantially above its own production quota level - this from the country that often produces less than its quota, to compensate for its fellow Opec members’ transgressions.
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