(EnergyAsia, June 28 2011, Tuesday) — Saudi Arabia plans to raise its oil production to average nearly 10 million b/d in June and coming months following the failure of the OPEC meeting earlier this month to set a production quota.
Citing anonymous sources, news agencies said state Saudi Aramco will proceed to stamp its authority over dissenting members of the cartel which had sought to reduce production in the face of rising oil prices.
However, it is not known if the kingdom will stick to this plan after last Thursday’s surprise announcement by the International Energy Agency to release 60 million barrels from its stockpile to keep oil prices from rising.
Saudi Arabia has maintained that it has the capacity to maintain production at 12.5 million b/d for years.
Earlier, the chief economist of the country’s top lender National Commercial Bank had forecast that state oil firm Aramco would produce an average nine million b/d this year.
Despite promising to make up for the market’s loss of Libyan oil following the start of civil war in February, Saudi Arabia had lowered its production in recent months after raising it to more than nine million b/d in February.