NEW YORK, June 14: Saudi Arabia plans to increase its oil output next month by about half a million barrels, the New York Times reported on Saturday, quoting oil traders and analysts here.

The increase could bring Saudi output to a production level of 10 million barrels a day, the kingdom’s highest ever.

The newspaper said the Saudis seemed to be increasingly nervous about both political and economic effects of high oil prices. In recent weeks, soaring fuel costs have triggered demonstrations and protests across the world.

Last week, king Abdullah took the unprecedented step and convened a major gathering of oil producers and consumers to address the causes of the price rally. The meeting will be held in Jeddah on June 22.