Commodity Online
RIYADH: In a significant development, Saudi Arabia on Friday confirmed that it had raised crude oil production by 300,000 barrels per day on May 10 and that increase was sufficient.

The announcement coincided with a Saudi visit by US President George W. Bush to appeal for a more significant increase in output that might help bring down the price of oil. The price topped $127 a barrel overnight, a record high.

Saudi oil Minister Ali Naimi told reporters at a news conference that the increase, which came in response to customers' requests, would push output from the world's leading producer to 9.45 million barrels per day by June.

Saudi Arabia, under US pressure to increase its oil output amid soaring energy prices, suggesting it would raise production further only in response to demand.

He said the Saudis increased production by 300,000 barrels per day on May 10 after about 50 customers around the world requested it. He added most of the requests came from the US.

Naimi also said that in the future, if there was a need to increase oil production, then Saudi Arabia has no objection to doing so. He also said Saudi officials spoke to Mr Bush about production and told him the kingdom's policy is to respond to the customers' demands.

Saudi Arabia, which has the world's largest oil reserves, has in the past acknowledged the ability to produce as much as 11 million barrels a day.

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