Saudi balm may bring down global crude prices
NEW DELHI: There is some good news fro those countries which are hit by the fuel shock. After the crude oil prices hit $139 a barrel, Saudi Arabia has come out in the open to say that the prices are abnormally high and it will increase its oil production by 200,000 barrels a day next month.

This move will help rein in the price a bit. This decision was conveyed to UN chief Ban Ki-moon.

The UN secretary-general met with Saudi Arabia’s oil minister Ali al-Naimi in Jiddah during a one-day trip to the world’s largest oil producer.

According to reports, Saudi Arabia would increase oil production by 200,000 barrels a day from June to July. In May, the kingdom increased its production by 300,000.

By July, production should be at 9.7 million barrels a day.

According to reports, Saudi Arabia said it understands that the current price of oil, which topped $139 per barrel earlier this month, is not normal. Saudi Arabia believes that the current oil prices are abnormally high, and it is ready to restore prices to their appropriate levels.

Saudi Arabia is concerned that sustained high oil prices will eventually slacken the world’s appetite for oil, affecting the kingdom in the long run.

The kingdom has called for a meeting of oil producing and consuming countries on June 22 in Jiddah to discuss ways of dealing with soaring energy prices.

A production increase of about 500,000 barrels per day was to be announced soon.

Crude prices have reached record highs, surpassing $139 per barrel on June 6 after surging nearly $11 in the biggest single-day price leap ever.

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