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November 22, 2008 10:03:15 CST

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Saudis to Boost Oil Output to Record Level

Posted Jun 14, 08 6:14 CDT in World,  Business 

(Newser) – Saudi Arabia aims to put the brakes on oil prices by raising output to its highest ever, the New York Times reports. The kingdom resisted calls from President Bush earlier this year to boost production, but is now concerned that record oil prices could lead to lower demand in the long term by cutting economic growth and making alternative fuels more viable.

News of the Saudi plans sent the price of oil down by nearly $2 yesterday. Some analysts, however, think the move could backfire on the Saudis or doubt the kingdom has the capacity to raise production much higher. The move could put Saudi Arabia at odds with its OPEC partners, who blame speculation and the weak dollar instead of supplies for the price of oil.

Source New York Times

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A derrick pumps in a oil field near the Saudi Arabian border in this file photo. Insiders say the kingdom is planning to raise its production to stabilize the price of oil.   (Getty Images)
In this Friday, March 21, 2008 file photo, a Saudi Arabian man fills his vehicle's tank at a gas station in Riyadh, Saudi Arabia.   (AP Photo/Hasan Jamali, File)
Saudi Arabia's King Abdullah has organized a major gathering of oil producers and consumers to address the causes behind rising oil prices.   (AP Photo/Saudi Press Agency, HO)
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