Saudi offers to up oil output to make up for Katrina losses

Saudi Arabia offered on Monday to increase oil production to make up for the losses caused by hurricane Katrina.

In an official statement Oil Minister Ali Al Naimi said "To the extent that markets are concerned about the impact of Hurricane Katrina on the availability of crude oil supply, Saudi Arabia stands ready to increase oil production immediately to 11 million barrels per day and sustain that level to replace any shortages in the crude oil market," a statement said.

The offer has been made to reassure markets as experts predict that oil prices could rise to the once unthinkable $80 a barrel.