Oil output to boost Saudi economy

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Following Libya?s crude oil disruption, Saudi Arabia?s expected increase in oil production is set to sharply boost the Gulf Kingdom?s revenue and allow it to record massive surpluses, as stated by the country?s largest bank.

National Commercial Bank (NCB) is pumping much above its OPEC?s quota after the ongoing conflict in Libya and is currently supplying 90% of the global market?s crude needs.

?Marking the first failure to reach an agreement in over 20 years, rumors point towards Saudi that is expected to meet the proposed increase, given its spare capacity of over 3 million mbd,? NCB said.

?With current production levels at almost nine million mbd, revenues would increase by over 11% and would result in an unprecedented surplus in the Kingdom?s accounts – in brief, if additional supplies are met with demand, this could prove very fruitful for Saudi Arabia as oil prices are well above the budgeted break-even price,? as per the report.

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