Saudi Arabia, the world’s biggest exporter of crude oil, has offered its major customers in Europe, Asia and the US some extra oil supplies with the intention of bringing down the continuously rising crude oil prices. The announcement is nothing short of surprising given the cold reply Riyadh had given the G7 finance ministers this month, when they asked oil exporters around the world to expand production.
Despite Saudi Arabia’s claim that supply and demand in the market are balanced, the country has carried out discussions with large refiners, offering them extra oil. Riyadh is now evaluating their responses, trying to figure out by how much it can expand its oil exports. In August the nation produced 9.9 million barrels per day, while in September it once again reached top production levels of 10 million bpd.