Saudi Arabia Rethinks Oil Strategy Amid Market Share Battle

Saudi Arabia is preparing to abandon its unofficial $100 per barrel oil price target as it plans to increase output to recover market share, even at the cost of lower prices. OPEC+, led by Riyadh, had been cutting output to support prices, but rising supply from other nations has pressured prices down nearly 5% this year.

Saudi Arabia is poised to abandon its unofficial $100 a barrel oil price target, aiming to increase production to regain market share even if it results in lower prices, according to reports from the Financial Times.

OPEC+, mainly led by Riyadh, had been reducing oil production to shore up prices in collaboration with allies such as Russia. However, prices have fallen nearly 5% this year due to increasing supply from competitors, particularly the United States, and sluggish demand growth in China.

OPEC+ decided to delay a planned production increase this month, following a slump in crude prices. Despite this, Saudi Arabia is determined to boost production from December 1, even at the risk of prolonged low prices.

The global oil market remains volatile as OPEC+ members navigate supply cuts and rising competition from non-OPEC producers.

(With inputs from agencies.)