Saudi Arabia Offers To Increase Output By About 6%

WASHINGTON, May 21 – In an effort to drive down record crude oil prices, Saudi Arabia, the world’s largest oil producer, offered on Friday to increase its output by at least 500,000 barrels, to 9 million barrels a day, starting June 1.

New York Times

In contrast to an earlier suggestion by the country that OPEC increase its quotas, the offer is important because it would truly add more oil to the market rather than simply formalizing existing overproduction by the group’s members.

With global demand relentlessly high, oil prices rose above $40 a barrel in New York on May 11 and remained there until Friday.