Saudi Arabia is actually going to increase global oil supply by 2%, all by it's lonesome. That doesn't include what Kuwait or other concurring members of OPEC will do in response to Saudi Arabia's move. Now that subsidies for gasoline and diesel are being peeled away in China, India, etc., you're going to see the biggest supply builds in a long, long time, as increased supply meets diminished demand. From the original article: "Saudi Arabia will raise output to 9.7 million barrels per day in July, the fastest daily rate in decades." And now, China is really getting serious about raging inflation. Their consumer pay 50% of market prices for fuel, because of subsidies. That's not going to be the case for much longer. http://www.bloomberg.com/apps/news?pid=20601068&sid=aHrIAay6PUO0&refer=home
Hmm the way I read it Saudi Arabia will increase its nation's total crude output by 2%. That's +200k barrels per day or +0.2% of global daily production.