Will OPEC & Saudi Arabia move to higher oil market volatility?
After several years of relative stability in global crude oil markets, speculation is risi ng that strategic shifts from Saudi Arabia, OPEC, and the larger OPEC+ oil cartel could presage another period of higher market volatility in the months to come.
Why did Saudi Arabia cut oil production?
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.
Will Saudi Arabia increase oil output in 2024?
This strategic pivot became evident recently as Saudi Arabia prepared to increase oil output, aligning with broader OPEC+ decisions to gradually unwind some production cuts starting in December 2024.
Is Saudi Arabia ready to boost oil output?
Kazakhstan, which overproduced by 120,000 barrels a day, was also singled out. Although Saudi Arabia’s economy depends on higher pricing, a report from last week suggests that the kingdom might be ready to boost its oil output and bolster its market share.