The oil output of Saudi Arabia has been able to reach record highs – and the country could likely boost its production further next month as the sanctions of the United States of America on Iran edge closer.
Khalid al-Falih, the energy minister of Saudi Arabia disclosed that the country had increased its output to 10.7 million barrels per day in October. He also announced a further production hike this coming November.
The record high oil output of the country continues to be at 10.72 million barrels per day that it produced in November 2016.
Talking at an energy conference that was held in Moscow, Falih said that Saudi Arabia was in weekly communication with Russia in order to stabilise the global oil markets, which have mounted over the past few weeks.
He said that the prices were “not based on fiscal flows of supply and demand” but were produced in financial markets.
This afternoon, Brent crude oil was trading at $84.65 (£65.09) per barrel, having declined from a high of $85.33 earlier in the day and near the four-year high that it reached last Monday.
The oil prices have increased in the past weeks ahead of the sanctions of the United States of America on Iran which are expected to be imposed early next month.
Russia and Saudi Arabia have both raised their production as a result of the sanctions, however, last month Opec and non-Opec members ruled out a further increase to compensate for the expected loss of approximately 2 million barrels per day from Iran.
However, Reuters reported that the two nations have entered a private deal to increase the oil output to temper rising prices.
This year, Donald Trump, the President of the United States of America, has criticised Opec on various occasions, most recently last month, calling on the oil cartel to “get prices down now.”