A decade ago Saudi Arabia brought the $100 a barrel oil era to a close, increasing output as prices fell in 2014 in an effort to thwart the rapid emergence of the US shale industry. More recently, under energy minister Prince Abdulaziz bin Salman, the kingdom has sought to maximise revenues, cutting production to support prices.
Is Saudi Arabia resigning to lower oil prices?
Simply sign up to the Oil myFT Digest — delivered directly to your inbox. Saudi Arabia is ready to abandon its unofficial price target of $100 a barrel for crude as it prepares to increase output, in a sign that the kingdom is resigned to a period of lower oil prices, according to people familiar with the country¡¯s thinking.
Will Riyadh bring back oil production?
However, officials in the kingdom are committed to bringing back that production as planned on December 1, even if it leads to a prolonged period of lower prices, the people said. The prospect of Riyadh ditching its unofficial target hit the price of oil and the shares of oil companies on Thursday.