RIYADH: Saudi Arabia is preparing to abandon its unofficial $100 a barrel oil price target as it gets ready to raise output to win back market share, even if it means lower prices, the Financial Times reported on Thursday.

The Organization of the Petroleum Exporting Countries (OPEC), which is de facto led by Riyadh, has been cutting oil output to support prices along with allies including Russia, who are together known as OPEC+.

However, prices are down nearly 5% so far this year, amid increasing supply from other producers, especially the United States, as well as weak demand growth in China.

Earlier this month, OPEC+ agreed to delay a planned oil output increase for October and November after crude prices hit their lowest in nine months, saying it could further pause or reverse the hikes if needed.

The FT, citing people familiar with Saudi thinking, reported that Saudi Arabia is committed to the group raising production as planned on Dec. 1, even if that means a longer period of low oil prices. Global crude benchmark Brent was down about 1.7% to $72.25 at 1031 GMT following the FT report.

The Saudi government’s communications office did not immediately return a request for comment. The market share of OPEC+, formed in late 2016, has slipped to all-time lows after output cuts since 2022 and supply increases by the US and other producers, according to the International Energy Agency.

OPEC+ oil output is equal to 48% of world supply, according to Reuters calculations based on IEA figures. Saudi Arabia’s crude output is below 10% of the world market, while US oil output has risen to 20% of world supply. Saudi Arabia has decided that it will not continue to cede market share and believes it has enough funding options, including foreign reserves and debt, to withstand a period of lower prices, the FT said.—Reuters