Saudi Oil Output Cut Clue to High Prices

Schlumberger – With Saudi Arabia’s latest revelation, there’s one less mystery to what’s been behind oil price strength over the past few months.

While Saudi Arabia has said it’s investing heavily to raise its oil output capacity to 12.5 million barrels a day in 2009 from 11.3 million b/d, the world’s No. 1 crude producer has been quietly cutting back current volumes.

Saudi Oil Minister Ali Naimi, in an interview with The Wall Street Journal published Monday, said the country’s output in April averaged 9.1 million b/d, its lowest level since January 2005.
Schlumberger