Saudi Arabia said it was prepared to increase its oil production to make up for supply losses caused by Hurricane Katrina, the official news agency SPA reported.
"Saudi Arabia is ready to increase its production to compensate for any lowering in supplies of crude on the international oil market," said Oil Minister Ali al-Nuaimi, quoted by SPA.
Oil prices dived from a new high above 70 dollars a barrel on Monday after the US government said it could release strategic crude reserves in response to the hurricane.
Traders said the reversal came after the US Department of Energy said it stood ready to act if requested to tackle supply shortages caused by the impact of Katrina on Gulf of Mexico rigs and Louisiana refineries.
In Asian electronic trade, the New York contract for light sweet crude for delivery in October had blazed to a new record high of 70.80 dollars. But by the end of trade in New York, the contract stood at 67.20 dollars.
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