Fuel prices to drop?

  • Saudi Arabia to increase production
  • Extra 200,000 barrels a day
  • Oil prices drop by $2 a barrel
Relief may be in sight for fuel users, after Saudi Arabia announced it will increase oil production to meet growing world demand.

Saudi Arabia has said it will increase its oil production by 200,000 barrels a day next month to meet growing world demand.

The news follows talks between UN Secretary General Ban Ki-Moon and Saudi Oil Minister Ali al-Naimi in Jeddah on the high price of oil.

However, consumers are being warned not to expect a dramatic drop in fuel tariffs, because prices are being kept artificially high by speculators buying up oil stocks to make money.

However, following Saudi Arabia's announcement, oil prices fell by almost $2 a barrel to around $134.
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