Saudi Arabia to Increase Oil Production to 30-Year High
Saudi Arabia is upping its oil production, largely as a show of strength.
The country, which is already the world's largest oil exporter, plans to increase production to 10 million barrels per day, the highest level in 30 years, according to the Associated Press. Some analysts take this move as a way to reassert Saudi dominance after OPEC denied its request to increase production.
"They're reminding everyone who the sheriff is in town," independent analyst Jim Ritterbusch told the Associated Press.
Saudi oil minister Ali Naimi pushed for higher production amongst OPEC members, though Iran and several other countries disagreed.
Analyst Andrew Lipow said that the Saudis decision to increase their own production was indicative of their attitude about the meeting: "They're going to unilaterally decide fro themselves when to supply the market," he told the AP.
Though the swift end to the contentious meeting was seen by some as a death knell to OPEC, many pointed out that most countries belonging to the association are already producing above their quotas.
Oppenheimer and Co. analyst Fadal Gheit told the AP that although their might be some bruised feelings, any group that can weather the Iraq-Iran war and the Iraqi invasion of Kuwait can make it through this.
"Every time I write them off, they come back," he said. "There's no love lost between these guys, don't get me wrong, but they'll stick together."