Saudi Arabia strives to stabilize current crude oil price and supply situation

The world’s leading oil-exporting country has remained steadfast in its commitment to continue supplying oil importing countries with crude oil, according to experts.

A month ago, Saudi Arabia’s oil production has gone up to nearly 10 million barrels a day. Based on a market report, this production volume is Saudi’s highest in more than two decades.

As the year 2012 opened, crude oil price per barrel jumped as fears that Iran would retaliate after news spread that the US and EU would impose a ban on Iran’s energy sector. Some have predicted that the country would try to bar major oil supply routes, particularly along the Hormuz Strait. Saudi Arabia’s government however, assuaged market fears by announcing that there would be enough oil in its reserves in case global oil supply contracts.

Strategic Energy Economic Research President Michael Lynch disclosed to Bloomberg that, with the recent boost in oil production, the Saudi government is apparently sending positive signals that it is well on its way to keeping up with the current oil supply-demand situation.

A few months back, Saudi Arabia assured markets that it will exert efforts to produce enough oil to feed global oil demand and bring stability to the energy market. The government also offered to bring crude oil prices to levels that are viable to both consumers and oil-processing firms.

Iran is one of the top producers of oil among OPEC-member countries, but production dropped by 50,000 barrels per day to 3.23M. This is the country’s lowest production in 20 years. A month ago, oil production went down further, to 2.94M.

Meanwhile, Nigeria increased oil production to 2.18M barrels a day last month. Libya was somehow able to produce 1.4M barrels a day during the same month.

In August last year, Libya’s oil production went down by 45,000 barrels per day due to conflicts that had battered its economy.