Top crude exporter, Saudi Arabia, has said its ready to supply whatever volume of crude is needed to meet demand. This was made known by Saudi Oil Minister Ali al-Naimi.
Saudi Arabia produced record high volumes of crude in August as it boosted output for the second time in two years to cushion the global oil market from supply disruptions. Naimi's comments come after producer group OPEC sought to reassure consumers there is sufficient supply to cover a plunge in Libya's output.
Despite rising Saudi output, benchmark Brent crude prices spiked above $117 a barrel in late August on the virtual shutdown of Libyan oil output and the prospect of U.S. military action against Syria. (O/R)
Brent traded at $111.67 after falling as the threat of a U.S. strike receded, but the market remains volatile on concern diplomatic efforts to avoid military action might fail.
Speculation about international political events is driving oil prices rather than any shortage in supply.
Saudi Arabia pumped a record 10.19 million barrels per day in August. Rising supply from Saudi helped offset losses from other members of the Organization of the Petroleum Exporting Countries. OPEC output in August fell around 124,000 bpd on the month to 30.23 million bpd, but the group said in its monthly report this week that the market was well supplied.