Saudi Arabia is meeting an Iranian challenge to its leadership of the 12-nation Organization of Petroleum Exporting Countries (OPEC) head on in an escalating dispute between the group's two largest producers that is raising questions about the cartel's credibility and concern that it could lead to its demise.
The kingdom signaled its intention to confront Iran and meet potential shortages in supply as a result of disruptions of oil production in Libya and Yemen in the wake of mass anti-government protests and escalating violence by offering Asian refiners more crude. To be able to do so, Saudi Arabia will boost production next month from 8.8 million to 10 million barrels per day, the Saudi-owned newspaper Al Hayat reported.
