The International Energy Agency confirmed on Friday that Saudi Arabia was stepping in to cover the fact that many platforms producing high-grade oil from Libya have been completely shut down because of the unrest.

A source told Reuters that the Saudi state oil company increased its production to more than 9m barrels per day – a rise of more than 700,000 barrels.

The worsening situation in Libya has seen about 1.2m barrels of production out of Libya’s 1.6m barrels daily output lost.

European refineries have been particularly worried about a shortage of high-grade crude, of which Libya is a key supplier.

However, the news of Saudi Arabia’s intervention calmed the spot price of oil, which had risen to a two-and-a-half year high above $119 at one point on Thursday.