Saudi Arabia is set to shift its focus from maintaining a $100 per barrel oil price, aiming instead to increase production to regain market share, according to a report. This change is expected despite potentially leading to lower prices.
OPEC+, led by Saudi Arabia, has been reducing output to support oil prices. However, with a nearly 5% decline in prices this year due to increased supply, particularly from the U.S., and slower demand growth in China, the group is reconsidering its strategy.
Earlier this month, OPEC+ postponed a planned output increase for October and November, citing low crude prices. Now, Saudi Arabia is reportedly committed to increasing production as planned on December 1, even if prices remain low.
Brent crude prices fell by 1.7% following these developments. Meanwhile, OPEC+’s market share has hit record lows due to production cuts and rising U.S. output. Currently, OPEC+ accounts for 48% of global supply, with Saudi output below 10% and U.S. output at 20%.
Saudi Arabia has historically increased production to protect its market share, as seen in past price wars with Russia and during the U.S. shale boom. The kingdom asserts that it does not target specific oil prices but focuses on market balance.