Oil prices dropped on 26 September, with Brent futures down $1.86/B to $71.60/B, following a report in the Financial Times citing “people familiar with the country’s thinking,” that Saudi Arabia is preparing to increase production from December to reclaim market share, regardless of the impact on prices. The report alleged that Riyadh “is ready to abandon its unofficial price target of $100 a barrel.”
Opec sources deny that the group targets prices, unofficially or otherwise, but the key element of the article was that Saudi officials “are committed” to easing production cuts from December in line with the agreement reached earlier this month which will see Opec+ producers return 2.2mn b/d by November 2025 (MEES, 6 September). MEES understands that despite this report, no definitive agreement has yet been reached on this. (CONTINUED - 310 WORDS)