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Saudi does not 'threaten' oil output hike - Gulf source

A gas flame is seen in the desert near the Khurais oilfield, about 160 km (99 miles) from Riyadh, Saudi Arabia June 23, 2008. REUTERS/Ali Jarekji/File Photo

LONDON (Reuters) - Saudi Arabia "did not threaten" anyone with production increases at an OPEC experts meeting last week, a Gulf OPEC source said, but it warned that production around the world will rise if there is no output limiting deal. "This is not a Saudi issue," said the senior Gulf OPEC source. "All OPEC countries and other producers are unhappy with Iran for not wanting to be part of the freeze, and Iraq not accepting the methodology (of a freeze) according to OPEC independent sources," the source said on condition on anonymity as he is not allowed to comment publicly on the issue. "Saudi Arabia didn’t say output will rise. It said output could rise. Saudi doesn't threat, Saudi Arabia doesn't produce more than the customers need". "All oil producers could raise their production if there was no agreement, this is a fact." Four OPEC sources, who attended the meeting of experts last week, said Saudi Arabia told the gathering it could raise output to 11-12 million barrels per day from the current 10.5 million if there was no agreement. (This version of the story has been refiled to add dropped word to lead paragraph) (Reporting by Dmitry Zhdannikov and Reem Shamseddine)