Saudi Arabia is preparing to abandon its informal target of $100/bbl for crude oil as it plans to increase production, signaling the kingdom’s acceptance of a period of lower prices and intentions to take back market share, according to sources cited by the Financial Times.
Despite this, officials from Saudi Arabia are committed to restoring production on Dec.
1, even if it results in extended low prices.
In 2022, Brent crude averaged $99/bbl, the highest in 8 years due to market disruptions following Russia’s invasion of Ukraine.
“It is this news that sent prices lower this morning (Sept. 26, 2024) before the rebound started.
For now, however, it is nothing more than implementing a pre-agreed strategy that should prevent oil prices rallying significantly above $80/bbl,” Varga concluded...
News articles remains the property of the source. Tellbrief is a news aggregator.
