June 15, 2008 Saudi oil production plans A potentially huge
story from the New York Times. Saudi Arabia, the world's biggest
oil exporter, is planning to increase its output next month by
about a half-million barrels a day, according to analysts and
oil traders who have been briefed by Saudi officials. The
increase could bring Saudi output to a production level of 10
million barrels a day, which, if sustained, would be the
kingdom's highest ever. The move was seen as a sign that the
Saudis are becoming increasingly nervous about both the
political and economic effect of high oil prices. In recent
weeks, soaring fuel costs have incited demonstrations and
protests from Italy to Indonesia. Saudi Arabia is currently
pumping 9.45 million barrels a day, which is an increase of
about 300,000 barrels from last month. The loss of 1 million
barrels per day of Saudi production between 2005 and 2007 was
one of the single most important factors in the run-up in world
oil prices over the last several years. One theory of t