Production will increase by 3.3 per cent to 9.45 million barrels per day.

Oil minister Ali al-Naimi said: “In the future, if the need appears, Saudi Arabia has no objection to producing more.”

The extra production is intended to alleviate some of the pressure on the oil price.

That stands at around $126 per barrel for US crude after hitting an all-time high of $127.82 on 16 May.

Despite the news, US investment bank Goldman Sachs has forecast that the oil price would average $141 a barrel for the second half of this year.