According to a Bloomberg News survey, crude oil prices may increase on speculation unrest in the Middle East as Saudi Arabia reduces its production of same.

The survey was done by total 33 analysts, 15 or 45% of who forecasted an increase in the crude oil through April 21, 9 or 27% predicted a decline in the prices of crude oil and remaining 9 analysts projected only a little change. Last week, 49% respondents marked futures with gain.

With no doubts, prices have advanced 18% this year as unrest spread from Tunisia to Egypt, Libya, Yemen, Bahrain and Syria. Regarding the situation, Bill O’Grady, Chief Market Strategist at Confluence Investment Management in St Louis commented that “There are no signs that the situation in the Middle East is getting any better. Syria is looking downright ugly right now”.

As per BP Plc, which publishes its BP Statistical Review of World Energy each June, 36% global oil production is done by the countries in the Middle East and North Africa, who also held 61% proved reserves in 2009.

Saudi Arabia definitely tops the list as the biggest producer in the Organization of Petroleum Exporting Countries. But John Sfakianakis, Chief Economist at Riyadh-based Banque Saudi Fransi, said yesterday in a telephone interview that Saudi Arabia has reduced its crude oil output in April by 300,000 barrels per day and thus the Saudi headlines are a major worry for all.