Thu Sep 26 15:00:00 UTC 2024: ## Oil Prices Plunge on Rumors of Saudi Production Increase
**LONDON, UK -** Oil prices plummeted on Thursday, with Brent crude and WTI dropping over 2% each, following rumors that Saudi Arabia is considering increasing oil production. The Financial Times reported, citing unnamed sources, that the Kingdom is willing to lower its $100-per-barrel price target to boost output.
The report suggests that OPEC+ is also preparing to increase production collectively in December, further adding to downward pressure on prices. However, Russia’s Deputy Prime Minister Alexander Novak denied any discussions regarding changes to the cartel’s output cuts.
OPEC+ had initially planned to begin unwinding some of its 2.2 million bpd oil output cuts in October, but this was delayed due to the oil price crash in late August and early September. The cartel has since postponed the unwinding until December 2024.
The rumors of increased production come as OPEC+’s September report indicates a reduced demand growth outlook, adding to bearish sentiment in the market.
Analysts believe that Saudi Arabia’s willingness to abandon its $100 price target signals its intention to regain market share, even at the cost of lower oil prices. The Kingdom has been pumping approximately 9 million bpd for over a year, without veering from its target, resulting in a loss of market share to both non-OPEC+ producers and other cartel members.
The future of oil prices remains uncertain as the market grapples with the potential for increased production and the implications for global demand.
First Piper 