RE: Crude Slump explanation not Lebanon driven26 Sep 2024 09:09
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.
The world’s largest oil exporter and seven other members of the Opec+ producer group had been due to unwind long-standing production cuts from the start of October. But a two-month delay sparked speculation over whether the group would ever be able to raise output, with the price of Brent earlier this month briefly dropping below $70 to its lowest since December 2021.
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.
Saudi Arabia’s energy ministry did not respond to a request for comment.
The shift in thinking represents a major change of tack for Saudi Arabia, which has led other Opec+ members in repeatedly cutting output since November 2022 in an attempt to maintain high prices.
The price of Brent crude, the international benchmark, averaged $99 a barrel in 2022, the highest level in eight years, as the fallout from Russia’s invasion of Ukraine roiled markets, but has since fallen back.......
A FT.com article that can wipe billions off company valuations and make billions for members of the club is a prime example of pure media/market manipulation. The FT have form here with previous articles.
KSA abandoning of an unofficial target of $100pb by unnamed 'people' is a pure BS non story. When last was oil $100 ?
Remember, KSA have just negotiated compensation cuts over coming month's with Opec's three over producers. They have extended their own cuts. Oil demand is healthy.
and also bear in mind that there is an election in seven weeks.
Always look at the source.
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