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FINANCIAL NEWS
Saudi can raise oil output to 12.5m bpd: Oil Minister
16 Jan 2012
(MENAFN) Saudi oil minister, Ali Al Nuaimi, said that the Kingdom has the ability to increase its oil output capacity to 12.5 million barrels per day (bpd), reported Emirates 24/7.
Al Nuaimi added that the country could raise it output to offset shortages in
the global oil market that would probably occur from new Western sanctions on Iran, denying recent reports by Reuters that Saudi had approached comfortable operational output and would likely struggle to boost it.
He also said that the Kingdom was committed to ensuring supplies to its customers, adding that for 20 years, South Korea and Japan were the country’s main customers, and Saudi is capable of meeting the needs of all its clients in a guaranteed manner.
It is worth noting that Reuters reported that at the current time, Saudi is pumping just below record rates of 10 million bpd, and that heavy investments over the past years allow it to increase supplies to 12.5 million bpd, adding that pumping anywhere near the declared output capacity might involve extracting heavy crudes the market might not need, moreover, it would be hard to maintain higher rates for lengthy periods.
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