Amsterdam, Netherlands, May 24--The U.S. energy secretary said that Saudi Arabia has assured Washington it will supply up to two million barrels a day in additional crude oil if the market demands it.
The pledge underscored differences within the Organization of Petroleum Exporting Countries, which has come under intense pressure from the United States and other oil-importing countries to boost output to calm markets and reduce prices. Saudi Arabia is OPEC's most influential member, and it alone has significant unused capacity to pump more oil quickly.
Some OPEC members say there is enough oil on the market already, and argue that the high prices are a result of the war in Iraq and instability in the Gulf.
Energy Secretary Spencer Abraham told reporters Sunday that Saudi Arabia has pledged to pump an additional 600,000 barrels a day starting in June, lifting its daily output to 9.1 million barrels.
"He also stated that going forward they will meet all requests up to their full capacity of 10.5 million barrels a day. I think this was a very important comment on his part," Abraham said after meeting privately with Saudi Oil Minister Ali Naimi.
He said he expected the new Saudi commitment would help reassure oil markets about the reliability of supplies.
Oil prices have soared above $40 a barrel in recent weeks due to fears about instability in Iraq, bottlenecks in gasoline production at U.S. refineries, and an unforeseen burst in global demand, particularly from China and the United States.
