Saudi Arabia is preparing to prolong oil production cuts into next year as Opec+ weighs further reductions in response to falling prices and rising anger over the Israel-Hamas war.
The voluntary measure of 1mn barrel-a-day cut, due to expire at the end of this year, was introduced in the summer as a temporary step on top of wider cuts by the oil cartel. At present, Saudi Arabia produces about 9mn b/d, compared with a maximum of about 12mn b/d.
Further cuts, which could inflame tensions with the US, are under discussion by Opec+ as it prepares to meet in Vienna on November 26.
While the oil price drop is the main cause, members are also indignant at Israel’s war on Hamas and the humanitarian crisis in Gaza.
The Financial Times have reported on comments from Amos Hochstein, the White House’s chief energy adviser, saying that the Arab states will not "weaponise" oil. The FT is gated but, in brief, Hochstein argues that relations between Biden and the Gulf States are good and that therefore oil production cuts will not be used as a weapon. Hochstein did concede though that the situation is 'evolving'.