Saudi Arabia in talks to boost oil supply

Saudi Arabia is stepping in to prevent an oil supply blackout driven by the Libyan turmoil, the Financial Times reports.

This is the clearest indication to date the leader of the Opec oil cartel is about to boost supplies to stop further rises in the oil price, which hit $119 a barrel today, the FT says. Saudi Arabia is considering two options to boost supple. On one side, the country could spur its own production and increase the crude transit through the East-West pipeline, which delivers to Europe through the Red Sea port of Yanbu. On the other side is the possibility of a swap arrangement to redirect West African oil from Asian buyers to Europe. Saudi would then intervene as a substitute supplier to...