Saudi to up oil output to 12.5 million b/d

Saudi Arabia’s total oil production capacity is now at 11 million barrels a day (b/d) and plans are in place to increase it to 12.5 million b/d, Saudi Arabia’s Minister of Petroleum and Mineral Resources, Mr Ali Al-Naimi, said Monday.

With the Kingdom’s production currently at 9.5 million b/d, this leaves spare capacity at 1.5 million b/d. The perception of a lack of spare capacity amongst the Organization of Petroleum Exporting Countries was a major contributor to the “fear factor” which sent oil prices soaring this year, as traders feared OPEC would not be able to make up for any production disruptions around the world.