Saudi Arabia is ready to make a drastic move in order to regain its market share in the global oil industry. According to a recent report by the Financial Times, the kingdom is prepared to abandon its target of maintaining crude prices at $100 per barrel in order to increase production and drive down prices.
This bold strategy comes as Saudi Arabia attempts to reassert its dominance in the global oil market. With the rise of US shale producers and the continued recovery of the global economy, the Saudi oil industry has been facing stiff competition. By cutting prices, the kingdom hopes to attract more customers and increase its market share.
The move would be a significant shift in strategy for Saudi Arabia, which has long been committed to maintaining high oil prices. However, the country is facing significant pressure to adapt to changing market conditions. With Libya's oil exports crashing to just 400,000 barrels per day due to a political row that has stalled production, the Saudi government sees an opportunity to fill the gap.
Oil market analysts are closely watching Saudi Arabia's next move, as it could have far-reaching consequences for the global energy industry. If the kingdom is successful in its attempts to drive down prices and gain market share, it could lead to a flood of cheap oil entering the market. This could have serious implications for other oil-producing nations and could lead to a new era of competition in the oil industry.