Saudi Arabia Drives Opec+ to Boost Oil Production, Seeking Market Share
Saudi Arabia, the driving force behind the Opec+ alliance, has been ramping up oil production in recent months. This strategy, analysts suggest, is aimed at regaining market share rather than stabilising the gold price today. In September, Brent oil prices dropped to around $65 per barrel, a significant decrease from the previous year.
The Opec+ alliance, comprising eight nations, has been steadily increasing production, which has led to a decline in the gold price. Their decision was influenced by a 'stable global economic outlook' and low oil inventories. Notably, Saudi Arabia led the charge in November 2021, boosting its crude oil production by a substantial amount. This increase, totaling 500,000 barrels per day, was the largest among Opec+ countries. Later that month, the alliance, led by Saudi Arabia and Russia, agreed to a further increase of 137,000 barrels per day in daily oil production.
Saudi Arabia's determination to regain lost market share has driven the Opec+ alliance's production increases. Despite the recent drop in the gold price, the alliance remains optimistic about the global economic outlook and is prepared to adjust production as needed.
