Oil is making a move higher Friday, in light of a report that Saudi Arabia will need to increase total capacity to meet demand. Crude oil is trading higher by more than 0.7% today, to $112.29.

Petroleum Intelligence Weekly (PIW), in a report citing Saudi sources this week, will need to pump at least 9 million barrels per day (bpd) for the next few years to meet demand.

Saudi sources expect the kingdom will need to keep oil output around 9 million bpd or higher over the next few years,” PIW said.

According to a Reuters report, “Saudi Oil Minister Ali al-Naimi said on Sunday the kingdom’s April oil output may rise from March, when it pumped 8.292 million bpd. Output was above 9 million bpd as recently as February, when the kingdom produced 9.125 million bpd to plug the gap left by Libya, where civil war cut exports.”

Saudi Arabia has previously said it could take capacity to 15 million bpd if demand increased.

The United States Oil Fund ETF (NYSE: USO), which reflects the changes in percentage terms of the spot price of light, sweet crude oil, closed higher by $0.35 on Thursday, to $44.57.

Read more: http://www.ibtimes.com/articles/137257/20110422/crude-oil-makes-move-higher-in-light-of-report-that-saudi-arabia-may-increase-output-to-meet-rising-.htm#ixzz1KHioOM1h