Saudis May Be Strapped for Oil, Close to Full Capacity

Saudi Arabia’s pledge to boost oil production by 500,000 barrels per day may not be achievable, a source close to the Saudi oil industry told CNBC.com.

The New York Times reported on Saturday, citing unnamed analysts and oil traders briefed by Saudi officials, that the production increase was to be announced at a meeting of oil producing and consuming countries on June 22 in the port city of Jiddah to discuss ways of dealing with
soaring energy prices.


The increase would bring Saudi’s oil production to 10 million barrels a day, the country’s highest ever, according to reports by the New York Times and the Middle East Economic. Saudi Arabia is the world’s largest oil-producing country.

But the country’s ability to produce more than 9.45 million barrels a day of easily refined sweet crude is reliant on the newly-discovered Khursaniyah field, which is of yet not producing to its full capacity, a source close to the industry said.

CNBC