Saudi Arabia plans to increase oil production in the coming months, with the recent major production cut, say advisers to the kingdom, a sign of growing confidence in an oil price recovery.
The world’s largest oil exporter surprised oil markets last month when it said it would unilaterally break down 1 million barrels a day of crude production in February and March in an effort to raise prices.
But the kingdom plans to announce a reversal of the cuts when a coalition of oil producers meets next month, advisers said in light of the recent recovery in prices. Production growth will only begin in April, as the Saudis are already committed to holding out until March.
The advisers warned that the plans could still be reversed if circumstances changed, and the Saudis’ intention had not yet been made known to the Organization of the Petroleum Exporting Countries, the people and OPEC delegates said.
“We are in a much better place than we were a year ago, but I must once again warn against dissatisfaction,” Saudi Energy Minister Prince Abdulaziz bin Salman said at a conference on Wednesday. “The uncertainty is very great, and we have to be extremely careful.”