They need cash. Dubai: Saudi Arabia wants oil to stay between $70 and $80 a barrel for now as the world’s biggest crude exporter strikes a balance between maximising revenue and keeping a lid on prices until US congressional elections, OPEC and industry sources said. This held for a few years, only to be dropped as prices moved much higher.Riyadh has long screw barrel of injection moulding machines Factory been a close Washington ally.Saudi industry sources briefed the market about record oil production in which Aramco was planning to pump 10.Now, even though the IPO has been shelved, Saudi Arabia still wants to keep oil prices as high as possible without offending Washington, the sources said.It said the strategy was mainly to put a ceiling on crude amid concerns about the impact of high prices on demand as the trade war between Washington and Beijing escalates - and to keep a floor under prices to maintain revenues and market stability.
The Saudis need oil at about $80 and they don’t want prices to go below $70.OPEC and Saudi Arabia do not have an official price target and are unlikely to adopt one formally. They want to manage the market like this,” one of the sources told Reuters. It’s all because of Trump,” the source said.In the end, Saudi Arabia’s production in June was 10.But since then, Washington has said it would consider waivers on Iranian sanctions and worries about a trade war between Washington and Beijing have threatened to hit future demand for oil, the sources said.Earlier this year, Riyadh hoped to see oil prices above $80 and was ready to continue with a supply cut pact until the end of 2018, only to make a U-turn after Trump called on OPEC in April to boost supplies. They have plans and reforms and now the IPO is delayed.”. But ever since Trump became president in 2017, Saudi Arabia has become even more sensitive to US requests and both countries have coordinated policy more closely than under Trump’s predecessor.After announcing the flotation of Saudi Aramco in 2016, the kingdom began pushing for higher crude prices partly to help maximise the valuation of the state oil company ahead of an initial public offering (IPO), originally scheduled for 2018.That changed in April when US President Donald Trump put public pressure on Riyadh to keep crude prices in check, wanting to stop US fuel costs rising ahead of the US midterm elections in November.“Saudi Arabia is in need of flexibility in its output policy.An informal target of $70 to $80 raises the prospect of Saudi Arabia making regular tweaks to its output to influence the cost of crude as the market responds to other factors affecting global supply and demand.One industry source said it may have done precisely that last week.org said Saudi Arabia was trying to manage the Brent price within a very narrow range of $70 to $80 - and it was not an easy task.488 million bpd and in July it fell to 10. 15 the oil price has climbed steadily to touch $79.This echoes Saudi price aspirations from a decade ago, when the kingdom identified $75 as a fair price.Saudi Arabia still wants to keep oil prices as high as possible without offending Washington.With Brent heading towards $80 a barrel, Saudi Arabia told the market about an increase in its production last month sooner than it would have usually released such information, the source, who follows Saudi output policy, said.
We can raise production as high as 11 (mln bpd) or even 12 but then where will it go? We can’t push oil to the market,” that industry source said. OPEC and Saudi Arabia do not have an official price target and are unlikely to adopt one formally. After hitting $70.‘DIFFICULT TASK’The plan to boost output to record highs had been driven mainly by worries of a sudden supply shock after US officials said Washington aimed to reduce Iran’s oil revenue to zero, the sources said.In an August report, the Oxford Institute for Energy Studies www.72 on Tuesday.OPEC U-TURNThe aspiration for $70 to $80 is similar to that of other producers within the Organization of the Petroleum Exporting Countries.29 million. Saudi needs cash to finance a series of economic development projects.6-10.8 million barrels per day (bpd) in June and as much as 11 million bpd in July, the highest in its history.In June, for example, OPEC agreed with Russia and other oil-producing allies last month to raise output from July - with Saudi Arabia pledging a “measurable” supply boost.“Everybody has been talking about these kinds of numbers,” said an OPEC delegate from outside the Gulf.30 on Aug.
The Saudis will probably put a few more dampening signals out, given where prices have gone,” the industry source said. But they don’t want anyone else talking about oil prices now. Algeria, for example, says it sees $75 as fair.oxfordenergy.Brent crude has fluctuated between $70 and $80 since April 10.“Striking a balance between the various objectives, and doing it within a narrow price range, is an extremely difficult task given the wide uncertainties and the different shocks hitting the oil market,” the Oxford Institute’s note said.One industry source said the kingdom’s crude production plans were made according to its customers’ needs and that oil demand has not materialised as forecast