Saudi oil capacity to hit 11.8 mbpd in 2007

The world’s biggest producer is implementing plans to lift capacity to 11.8 million barrels a day in 2007 from 11 million bpd now, Naimi told reporters ahead of an OPEC meeting.

The green light for state oil company Saudi Aramco to bring onstream two new projects shows Riyadh is confident in continued strong world fuel demand growth, despite prices near $50 a barrel for benchmark U.S. crude.

The go-ahead will also alleviate concerns among consuming nations about the ability of state oil companies in OPEC nations to meet the rise in world fuel demand led by rapid economic growth in big importing countries like China and India.

Reuters