Saudis cut oil production to raise prices
SPECIAL TO WORLD TRIBUNE.COM
Wednesday, October 8, 2003
Saudi Arabia has quietly reduced oil production in an
attempt to maintain the price of oil.
Industry sources said the Saudi kingdom began cutting production in
September to reduce global oil stocks. The sources said the production cut
was also ordered to prepare for the prospect of the reentry of Iraq to the
The Saudi cut came amid a decision by OPEC on Sept. 24 to reduce
production by 900,000 barrels per day. Oil prices have since jumped by 12
percent to over $28 a barrel.
The analysts called the Saudi production cut significant but would not
provide figures. They said the oil supply picture would become clearer over
the next few weeks.