Saudis ramping up oil output to gain leverage in Opec talks in Sept

SAUDI Arabia suggests it may be increasing its August crude output to a new all-time high as it could give it more leverage to influence the September informal talks on a possible production freeze, Reuters reported last Wednesday, citing industry sources.

Saudi Arabia - Opec's biggest producer - pumped a record 10.67 million barrels per day (bpd) in July, up by some 120,000 bpd compared to June. The Saudis are usually ramping up production in the summer with the higher demand for crude, but what was unusual was that production hit a record high, above last summer's peak.

After holding output steady in the first half, the Saudis started pumping more from June onwards, and further increases in production would mean attempting to outproduce the world's top oil producer, Russia, which is not an Opec member. Higher output would also give the Saudis a few more bargaining chips at the September meeting, according to Reuters' sources.