Saudi Arabia is ramping up oil production and exports as part of its contingency plans, two sources familiar with the plans said on Wednesday.
The Saudi government media office did not immediately respond to a request for comment on the plan.
Just as it did last year when the United States attacked Iran’s nuclear facilities, Saudi Arabia increased its oil exports by about 500,000 barrels a day in June, shipping more crude to overseas storage.
Sources said Saudi Arabia is increasing oil production in preparation for emergencies in order to expand exports. If there is no disruption, Saudi Arabia plans to go back on track and reduce production thereafter to meet OPEC+ quotas, one of the sources said.
Iran, which produces more than 3% of the world’s oil, has vowed to retaliate against any attack, which could jeopardize other oil flows from the Middle East.
More than 20 million barrels of crude oil, condensate and fuel pass through the Strait of Hormuz every day, including volumes from Saudi Arabia, the UAE and Kuwait, as well as gas from Qatar.
Saudi Arabia, OPEC’s biggest producer, has intervened in the oil market for decades, supplying extra oil in times of turmoil or cutting production when it feels the market is oversupplied.
(Reporting by Dmitry Zhdannikov; Editing by Elaine Hardcastle)
