David Blair Saudis increase oil output – official

We now have confirmation from the International Energy Agency that the Saudis have indeed raised their output.

The IEA has not disclosed its estimate of the scale of the increase, but nor has it denied earlier suggestions that Saudi Arabia has begun producing above 9m barrels per day. Its level of output in January was 8.6m b/d, so the kingdom appears to have raised its output by some 400,000 b/d.

A Saudi oil official declined to confirm or deny any of these figures earlier today. But it seems that the talks with European refiners on the quantity and quality of oil they required have indeed borne fruit.

The news confirms what has been priced into the market since last night (note: this chart is WTI, rather than our usual Brent, because of some chart formatting errors – but the direction is the same).