Saudi Arabia is preparing to abandon its unofficial $100 a barrel oil price target as it gets ready to raise output to win back market share, even if it means lower prices, the Financial Times reported on Thursday.
The Organization of the Petroleum Exporting Countries (OPEC), which is de facto led by Riyadh, has been cutting oil output to support prices along with allies including Russia, who are together known as OPEC+.
However, prices are down nearly 5% so far this year, amid increasing supply from other producers, especially the United States, as well as weak demand growth in China.
Earlier this month, OPEC+ agreed to delay a planned oil output increase for October and November after crude prices hit their lowest in nine months, saying it could further pause or reverse the hikes if needed.
The FT, citing people familiar with Saudi thinking, reported that Saudi Arabia is committed to the group raising production as planned on Dec. 1, even if that means a longer period of low oil prices.
Global crude benchmark Brent was down about 1.7% to $72.25 at 1031 GMT following the FT report.
The Saudi government's communications office did not immediately return a request for comment.
No comments:
Post a Comment