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