Saudi oil output reaches record highs, but oil prices remain close to four-year peak
Saudi Arabia's oil output has reached record highs – and the country could further boost production next month as US sanctions on Iran edge closer.
Saudi energy minister Khalid al-Falih said the country had raised output to 10.7m barrels per day in October and announced a further production hike in November.
The country's record high oil output remains the 10.72m barrels per day it produced in November 2016.
Read more: Oil prices hit four-year high
Falih, speaking at a Moscow energy conference, said Saudi Arabia was in weekly communication with Russia to stabilise global oil markets, which have surged over the past few weeks.
He said prices were “not based on fiscal flows of supply and demand” but were created in financial markets.
Brent crude oil was trading at $84.65 (£65.09) per barrel this afternoon, having dropped from a high of $85.33 earlier in the day and near the four-year high it reached on Monday.
Oil prices have risen in recent weeks ahead of US sanctions on Iran – set to be imposed early next month.
Saudi Arabia and Russia have increased production as a result but last month Opec and non-Opec members ruled out a further hike to compensate for the expected 2m barrel a day loss from Iran.
Read more: Oil price rally cools as Trump blasts Opec again and Iran hits back
But the two nations have struck a private deal to raise oil output to temper soaring prices, Reuters reported.
Donald Trump has criticised Opec on several occasions this year, most recently last month, urging the oil cartel to “get prices down now”.