Saudi Arabia plans to increase oil production in the coming months, reversing a recent drop in production, the kingdom’s advisers say, a sign of growing confidence in the recovery in oil prices.
The world’s largest oil exporter surprised oil markets last month when it said it would unilaterally cut 1 million barrels a day of crude oil production in February and March in an effort to raise prices.
But the kingdom intends to announce a reversal of those cuts when a coalition of oil producers meets next month, councilors said, in light of the recent price recovery. Production growth will not begin until April, as the Saudis have already pledged to stay in cuts until March.
Advisers warned that plans could be reversed if circumstances change and the intention of the Saudis has not yet been communicated to the Organization of the Petroleum Exporting Countries, OPEC people and delegates said.
“We are in a much better place than a year ago, but I must warn once again against complacency,” Saudi Energy Minister Abdulaziz bin Salman said on Wednesday. “The uncertainty is very high and we have to be extremely careful.”