Saudi Arabia plans to increase its oil production next month, in contrast to the recent decline in large production, a sign of growing confidence in the recovery in oil prices, Kingdom advisers said.
The world’s largest oil exporter surprised oil markets last month when it said it would cut crude production by a million barrels a day in February and March in an effort to raise prices.
But the kingdom plans to announce a reversal of those cuts when it meets a coalition of oil producers next month, advisers said, in light of the recent recovery in prices. The increase in output will not start until April, if the Saudis have committed to sticking to the cuts during March.
Advisers warned that plans could be changed if circumstances change, and the Saudis’ intentions have not yet been communicated to the Organization of Petroleum Exporting Countries, the people and OPEC representatives said.
“We are in a much better position than we were a year ago, but I must warn against motherhood again,” Saudi Energy Minister Prince Abdulaziz bin Salman told a news conference on Wednesday. “Uncertainty is very high, and we must be extremely careful.”
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