An Associated Press article (subscription required) in the online Wall Street Journal indicates that Saudi Arabia plans to increase its production.
RIYADH, Saudi Arabia -- Saudi Arabia wants to increase its oil production so it can meet domestic and international demand while ensuring "fair" world prices, King Abdullah said Saturday.
Now pumping just over 11 million barrels a day, the kingdom is the world's largest oil producer and the biggest supplier of petroleum to the U.S.
The king did not say how much Saudi Arabia might increase production, but it has repeatedly said it was prepared to do so. Last May, Oil Minister Ali al-Naimi spoke of raising output to 12.5 million barrels a day by 2009.
Because oil prices have been and are likely to continue to remain volatile, I am not sure if Saudi Arabia's decision will have an immediate affect upon world oil prices.
The Associated Press does have one fact wrong, however. According to the Energy Information Administration's information, Canada is the largest exporter of crude oil to the U.S. In January, Canada exported 1.86 million barrels per day while Saudi Arabia, in second place, exported 1.56 million barrels per day.
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