Saudi Arabia Pushes for Faster Oil Output Increase Amid Market Pressure

Saudi Arabia is pushing OPEC+ to fast-track oil production increases, restoring up to 1.66 million barrels per day of output currently held back under voluntary cuts. This move, originally scheduled for late 2026, is set for debate during a video conference of OPEC+ ministers this weekend. The proposal comes after the alliance has rolled back roughly 2.2 million bpd of reductions over the past five months. Brent crude slipped 2.07% and the U.S. benchmark, West Texas Intermediate, was trading down 2.25% amid growing concern about additional supply.

In a significant development, Saudi Arabia is advocating for OPEC+ to fast-track its next oil production increase, moving up a supply hike originally scheduled for late 2026. The proposal, first reported by Bloomberg, would restore up to 1.66 million barrels per day (bpd) of output currently held back under voluntary cuts [1].

This initiative is set for debate during a video conference of OPEC+ ministers this weekend. The proposal comes after the alliance has rolled back roughly 2.2 million bpd of reductions over the past five months, signaling a pivot from defending prices toward reclaiming market share [1].

News of the Saudi move has already pressured oil futures. Brent crude slipped 2.07% to $65.60 per barrel as of 10:04 a.m. ET on Friday, while the U.S. benchmark, West Texas Intermediate (WTI), was trading down 2.25% at $62.05. The benchmarks are heading for their first weekly decline in three weeks amid growing concern that additional supply will tip the market into surplus [1].

The pressure was compounded by U.S. inventory data showing a 2.4-million-barrel build last week, defying expectations of a draw as refineries entered seasonal maintenance. Traders noted that stock builds in the United States could magnify the price impact of fresh OPEC+ volumes, particularly if demand growth slows into the fourth quarter [1].

The Saudi proposal follows weeks of speculation that the group could reopen talks on accelerating the supply path. Earlier this week, both Brent and WTI fell by about 2% on expectations that more barrels could return by October if consensus forms within the alliance [1].

The outcome of Sunday’s ministerial meeting will determine whether the remaining 1.66 million bpd is restored ahead of schedule, a decision that could reshape market balances through the end of the year.

References:
[1] https://oilprice.com/Energy/Oil-Prices/Oil-Slips-2-as-Saudi-Arabia-Presses-OPEC-to-Fast-Track-Output-Hike.html