Saudi prepares oil output ramp-up in case of US attack on Iran

Saudi Arabia is raising oil output for contingency purposes to boost exports, the sources said. The kingdom will dial back on the plan if no disruption happens and will produce less oil later to keep in line with its OPEC+ quotas, one of the sources said.

Iran, which produces over three per cent of global oil, has pledged to retaliate against any strikes, potentially putting at risk other oil flows from the Middle East. More than 20 million barrels of crude, condensate and fuels pass through the Strait of Hormuz daily, including volumes from Saudi Arabia, the UAE and Kuwait as well as gas from Qatar.

Saudi Arabia, OPEC's biggest producer, has intervened in oil markets for decades to provide more oil during disruptions or cut output when it felt the market was oversupplied.

(Reporting by Dmitry Zhdannikov; Editing by Elaine Hardcastle)