Saudi Arabia Plans Oil Supply Increase in December

Saudi Arabia plans to increase oil supply starting in December, aiming to reverse production cuts despite lower-than-expected global oil demand growth. This strategy could push crude prices down to as low as $50 per barrel, significantly impacting Russia's economy, which relies heavily on oil revenues to fund its war in Ukraine. Analysts warn that lower prices will hurt Russia more than Western sanctions, as Moscow's production costs are higher compared to OPEC+ members like Saudi Arabia. Reports indicate that Russia has been overproducing oil to meet urgent financial needs, but the impending Saudi supply surge could further strain its budget. The ongoing conflict in Ukraine has intensified Russia's economic vulnerabilities, compelling it to maximize oil revenue amidst challenging market conditions. Saudi Arabia's shift in strategy reflects frustration with OPEC's inability to stabilize prices above $100 per barrel, indicating a potential shift in market dynamics.