Top oil exporter Saudi Arabia lowered its crude supply by 569,000 barrels per day to 9.741 million barrels per day in July from a month earlier, the Gulf Oil Review reported Wednesday.

Top oil exporter Saudi Arabia lowered its crude supply by 569,000 barrels per day to 9.741 million barrels per day in July from a month earlier, the Gulf Oil Review reported Wednesday.

High Saudi output helps keep oil prices down, which is good news for fragile economies in the
U.S. and Europe , which rely on the kingdom to help maintain supply as they implement sanctions intended to press Iran over its nuclear program.

The kingdom produced 9.801 million barrels a day last month, compared with 10.10 million barrels per day in June, according to the report published by Petroleum Policy Intelligence.

Saudi Arabia is on track to surpass its record oil output this year, analysts said last month, offsetting a decline from Iran because of international sanctions, despite pressure from other oil exporters to cut back and help bolster world oil prices.

The kingdom shows no sign of letting up from its average production levels of 9.94 million barrels a day in the first half of 2012. Output averaged 9.9 million to 10 million barrels a day in July, industry analysts and shippers said, as the country increased exports and burned more crude to meet an increase in domestic electricity demand, which surges in the summer months.

That puts the top oil exporter in line to exceed its record oil output of 9.901 million barrels a day in 1980, when the country opened the taps to make up for a sharp fall in Iranian output after its 1979 revolution.

OPEC last month agreed to maintain its existing oil-production ceiling and pledged to rein in overproduction after some members complained that a glut of oil due to higher output from
Saudi Arabia and other Gulf countries could lead to a price crash.

Since OPEC's last meeting,
Iran and Algeria have called for an emergency gathering, while the group's president, Iraqi Oil Minister Abdul Kareem Luaiby, has already sent a letter to member states reminding them to comply with the ceiling.