Good news, bad news, as Saudi Arabia announced Sunday, in a conference, it would produce more oil but it wasn’t clear about the output increase.  According to The Associated Press, the kingdom’s oil minister said the Saudi Arabia would increase its oil production, seeing that the market is in need.

The pressure came from the U.S. and other big oil consumers, which considered this measure to be necessary, in order for the oil prices to decrease. Saudi Arabia, the world’s largest oil exporter, said it would pump 9.7 million barrels a day, starting July. Although this is somewhat reassuring, oil analysts said that the increase was too modest and the oil price would not suffer important changes.

"It will go down a little bit. It won't be significant," said New Mexico Gov. Bill Richardson, according to CNN.
Friday, oil closed near $135 a barrel. Even though the U.S and other countries said that the demand for oil was too big to keep up with, Saudi Arabia and other OPEC states blamed the falling U.S dollar and also financial speculation.

Al-Naimi, Saudi Arabia Oil Minister said that this situation was not caused by a supply shortage and said it was up to each country to improve the current state. "We all, whether producers or consumers, should cooperate together to stabilize the market — it shouldn't be left for one side alone," he said, according to The Associated Press.

"Spare capacity throughout the oil supply chain is important for the stability of the global oil market," said the conference’s final statement.

It remains to see what kind of effect will have Saudi Arabia’s decision.