Saudis Signal Oil Output Boost, Offering Relief to Consumers
- OPEC will ‘do what is necessary’ to reassure anxious customers
- Any increase would be smooth to avoid shocking the market
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OPEC and its allies are likely to gradually revive oil output in the second half of the year to ease consumer anxiety as prices trade near $80 a barrel, said Saudi Energy Minister Khalid Al-Falih.
The Saudi comments, echoed by Russia, mark a major shift in the historic alliance they forged in 2016 to end a global oil glut. While the producers were determined just a month ago to keep supply restrained and boost prices, they’re now changing course as oil’s surge to a three-year high puts strain on the global economy and draws political heat from major consumers, notably the U.S.