The former Soviet Union (FSU), which includes Russia, Azerbaijan, Kazakhstan and Turkmenistan, has recently become the major area for crude oil supply growth. This is mainly due to OPEC's policy of targeting a price above US$30 per barrel and the adjustments of its output to achieve such price levels. Such price levels make the more difficult extraction and transport of crude from the northern regions of the FSU viable on a commercial basis. Since 1996, output has increased by 50% and a considerable amount of this is being made available for export. In fact, during this year it is expected that production will outstrip Saudi Arabia.
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