NEW YORK (CNNfn) - Going against the opinion of some oil analysts, the U.S. government's Energy Information Administration says that the Saudi offer to increase crude oil production "should lower prices."

The agency's publication "This Week In Petroleum" said Wednesday that having examined the same arguments as other analysts, it has reached the conclusion that oil prices would subside if Saudi Arabia increased its crude oil production.

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But the findings can be construed as optimistic because although the market would welcome the increase in oil production, fear still abounds.

The inability to guarantee an uninterrupted supply of oil, terror threats and refinery issues are all unpredictable factors that pose a real threat to the steady supply of oil, according to analysts.

The EIA report alluded to this, saying, "We believe that the Saudi announcement could contribute to lower prices, particularly if the Saudis maximize the incremental supply of light crude and provide terms that will enable potential buyers to commit to the purchase of more oil without undue risk. As always, the devil will be in the details."