Saudi Arabia has said it will increase production capacity to 11 million barrels a day, an apparent step toward releasing more oil into the market in an effort to head off record prices that have climbed to more than USD 50 a barrel. Oil Minister Ali Naimi said the increase in production capacity, which amounts to 500,000 barrels a day in the next few weeks, would come from two fields, Abu Safa and al-Qatif. There has been some concern whether Saudi Arabia, which has been pumping 9.5 million barrels a day, about a million barrels a day shy of its previous capacity, would be able to significantly boost production. The kingdom insists it has enough excess capacity to meet any global shortfall.
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