Opec+’s repeated decisions to boost oil output signal an acceptance by Saudi Arabia that it is unable to push prices higher, say analysts, amid growing frustrations with other members of the cartel and ahead of a key visit to the region by US President Donald Trump.
The Saudi-led group has surprised the oil market three times in as many months by raising production faster than expected, having previously delayed the unwinding of long-standing output cuts in an effort to support crude prices.
While Opec-watchers are divided over whether Saudi Arabia wants to bring back all its curtailed production or just part of it, they point to evidence that the cuts were becoming less effective, plus the opportunity to curry favour with a US president who has repeatedly called for lower oil prices, as the drivers of its about-face.