Saudi Arabia to Abandon $100 Oil Price Target and ⁤Increase ⁢Production

Saudi‍ Arabia is ⁤set to abandon its ​unofficial ‌price target of $100 per barrel of oil and ‌increase production to gain market share, even​ if it means lower prices,‌ according to informed sources cited by the Financial Times.

OPEC+ countries⁣ are expected to ⁣confirm an increase in production as planned on December 1, despite oil prices having ⁣fallen, which could mean a longer period of low prices. As of September 26, the price of a barrel of Brent was ⁣$71.99, with quotes earlier this month falling below $70 for ‍the first time​ since​ December 2021.

The Saudi government no longer wants to​ continue losing market ⁢share to other oil producers⁢ and believes it has ‌sufficient funding ​sources, including reserves‍ and international ⁢bonds, to⁤ survive a period of ‌lower ⁢crude oil⁢ prices.

As⁣ part ⁣of a coordinated OPEC+ policy to support oil prices, ⁢Saudi Arabia ⁤has borne‌ most of the voluntary production cuts, with a reduction of 2 million ⁤barrels per day over the past two years, more than a third of the ⁢total reduction in OPEC+.

Several cartel members, such as Iraq and Kazakhstan, have ignored agreements by exceeding⁤ their quotas, while Saudi Arabia is currently producing 8.9 million barrels per day, the minimum since 2011, excluding‌ the period ⁤of the coronavirus pandemic and the attack ‌on the Abqaiq refinery in 2019.

The Kingdom expects to gradually increase production​ by 1 million barrels‌ per day ⁢by December 2025, which could be faster if other countries do not comply with agreements.