Concerns at the problems posed by escalating oil prices are reported to have led the Saudi Arabian Governemt to conclude that it would be advisable to increase production by 500,000 barrels a day, raising the Kingdom's production next month to a record 10 million barrels a day. The Kingdom fears that the high oil price could depress global growth and thus reduce demand for oil in the longer term. It is also aware that the economic strains caused by sharply increased oil prices have cause demonstrations and riots in a number of countries.
