Saudis cut oil production to raise prices

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 market.

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.

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