Black gold prices fell on reports of Saudi Arabia’s intention to increase production to regain market share.
Global oil prices continued to decline on Thursday morning after a sharp decline on Wednesday. This was confirmed by the trading results on September 26.
Thus, November futures for Brent oil fell in price on the London ICE Futures exchange by $1.73 (2.37%) to $71.17 per barrel.
November futures for WTI oil fell in electronic trading on the New York Mercantile Exchange (NYMEX) by $1.75 (2.51%) to $67.94 a barrel.
Black gold falls in price on reports of Saudi Arabia’s intention to increase production to regain market share. According to the Financial Times, citing sources, the kingdom plans to abandon its unofficial target price of $100 per barrel of oil and increase production to regain its market share even if it leads to lower prices.
The newspaper said the Saudi government does not want to lose market share to other oil producers and believes it has enough funding sources, including international reserves and bonds, to withstand a period of of lower crude oil prices.
Saudi Arabia now produces 8.9 million barrels per day, less since 2011, excluding the pandemic period and the drone attack on the Abqaiq field in 2019.
According to the plans, the country should gradually – by 83 thousand barrels per day per month – restore its production by 1 million barrels by December 2025. This pace can be faster if other country did not comply with the agreements under the OPEC+ agreement, the publication stated.
It is known that as part of the OPEC+ agreement aimed at supporting oil prices, Saudi Arabia took the majority of the voluntary production cuts. Over the past two years, it has been cut by 2 million barrels per day, more than a third of the total OPEC+ cuts.
Earlier in September it became known that Saudi Arabia was lowering oil prices to a three-year minimum for all regions.
Also this month, oil prices fell below $70 a barrel due to weak economic data from China.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.