Saudi Arabia "Does Not Reckon There Is A Need" For Production Expansion Beyond 12.5 MBD - FT

Saudi Arabia, the world’s biggest oil producer, has put on hold plans to increase long-term production capacity from its vast oil fields beyond existing proposals, its most powerful policymakers have said.

In a series of statements, including one by the king himself, the kingdom has warned consumers it does not reckon there is a need for further expansion beyond 12.5m barrels a day, an assumption disputed by the world’s biggest developed countries.

The realisation Saudi Arabia will not increase production to 15m barrels a day as quickly as important consumers and the markets had assumed could put further pressure on oil prices, which touched fresh records last week.

Mr Naimi has floated the figure of 15m barrels a day several times as representing the next phase of Saudi expansion although the number has never been adopted officially as a target. International organisations such as the International Energy Agency have taken the statements as signalling that Saudi Arabia will continue with its expansion plans.

EDIT

http://www.ft.com/cms/s/0/36b36e2a-0efe-11dd-9646-0000779fd2ac.html

They don't want to admit it, but all their actions indicate otherwise. They're trying to stabilize production on a plateau because they've seen what's happening in Mexico.

Ah well, it's been a good ride.

Among many.