HOUSTON: Oil prices fell more than 3% on Thursday on a Financial Times report that Saudi Arabia, the world’s top crude exporter, will give up its $100 price target in preparation for raising output, along with OPEC members and allies in December.

Brent crude futures were down $1.73, or 2.36%, to $71.73 a barrel, while US West Texas Intermediate crude fell $1.83, or 2.61%, to $67.86 per barrel as of 10:19 a.m. CDT1323 GMT.

Saudi Arabia is preparing to abandon its unofficial price target of $100 a barrel for crude as it gets ready to increase output, the Financial Times reported on Thursday, citing people familiar with the matter.

Meanwhile, two OPEC+ sources told Reuters on Thursday that the producer group is set to go ahead with a December oil output increase because its impact will be small should a plan for some members to make larger cuts to compensate for overproduction be delivered in September and later months.

“They are over-reacting to the story from FT,” said Phil Flynn, senior analyst for Price Futures Group.

The Saudi government’s communications office and OPEC did not immediately return a request for comment.

The Organization of the Petroleum Exporting Countries, along with the group’s allies including Russia, together known as OPEC+, have been cutting oil output to support prices.—Reuters