The Saudi government (i.e., the King) has decided to increase crude oil production by 700,000 barrels per day, starting in July (9.7 million barrels per day total).
At an average of $120/barrel, the Saudi government will bring in an additional $84 million/day. I am not convinced that the sudden generosity of the Saudis, and their concern for the world oil consumer, is completely benign. I suppose one could also look at it at as an 8% increase in their daily production. Perhaps, it will offset the price of refined petroleum products, especially in United States' volatile gasoline market.
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