NEW YORK – As crude oil prices reached a nine-month high on concerns about Iran’s nuclear program, Saudi Arabia has increased its crude exports while the United States ponders releasing oil from its Strategic Petroleum Reserve, according to media reports Saturday.

Saudi Arabia, the world’s biggest oil exporter, has increased production in the past week and offered additional output to its largest customers to contain prices, Reuters reported.

The kingdom has said publicly that it would increase its output to cover any shortfall to the world supply from Iranian exports, Reuters reported.

The newswire, citing unnamed industry sources, said Saudi Arabia had increased exports to just over 9 million barrels a day the week before, compared with an average of about 7.5 million in January. Reuters said it wasn’t clear if the numbers were the start of a longer Saudi supply addition or a temporary move.

Crude oil prices rose to more than $125 a barrel after the United Nations’ nuclear watchdog flagged the potential military threat of Iran’s nuclear program, Reuters said, adding the U.N. aborted an inspection mission to Iran this past week.

Iran’s customers in Europe and Asia have already curbed their buying from the world’s fifth-largest crude exporter because of U.S. sanctions on Iran’s oil buyers, as well as a European Union oil embargo to begin July 1, Reuters reported.

Advertisement

According to AAA, average U.S. regular gasoline prices had risen to $3.674 a gallon as of Saturday. The average was $3.38 a month ago and $3.29 a year ago.

Treasury Secretary Timothy Geithner said on CNBC television Friday that an improving economy and Iran’s “saber-rattling” were behind the recent rise in oil prices.

He said the administration will continue to look at tapping the strategic petroleum reserve but emphasized that there’s “no quick fix,” language President Obama used in a key speech Thursday. Geithner also said the White House was looking to ensure alternative supplies from Saudi Arabia if needed.

The U.S. Strategic Petroleum Reserve has enough capacity to cover U.S. needs for about 40 days, Reuters reported.

 


Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.