Saudi Arabia hints at record crude output in Aug.

Saudi Arabia is indicating that it could boost crude output to a new record level in August to overtake Russia, the world’s top oil producer, ahead of informal talks next month among major producers, Reuters reported, citing unnamed industry sources.

Ramping up production could give the kingdom greater leverage during the discussions in Algeria when both OPEC and non-member producers are expected to revive an agreement to freeze output, sources said.

A previous attempt to cap production failed earlier this year, after Saudi Arabia insisted that rival Iran join negotiations.

Saudi Arabia pumped a record 10.67 million barrels per day (mbd) of oil in July amid a surge in domestic demand during the hot summer months, according to OPEC data. The figure beat the previous all-time production high of 10.56 mbd in June of last year.

The kingdom looks set to raise output further to as high as 10.8-10.9mbd this month, one source outside OPEC revealed.

Last week, Saudi energy minister Khalid Al-Falih said the kingdom was ready to work with other major producers to help stabilize the oil market. He explained the market is on the right track towards rebalancing, but added that more time would be needed for clearing inventories.