Why Saudi Just Abandoned Its Core Oil Rule - Crude Oil Prices Today | OilPrice.com

Source: Crude Oil Prices Today | OilPrice.com

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DW NOTE

Saudi Arabia has spent decades defending $100 oil as an existential floor — the price needed to fund domestic spending without draining reserves. The kingdom is now reportedly prepared to let crude fall below that threshold to regain market share. This marks a reversal of the production discipline that defined OPEC+ policy since 2016. It also arrives at a peculiar moment: the Strait of Hormuz has been effectively closed for 241 consecutive days, global supply is down 6%, and inventories are still draining at 700,000 barrels per day. If Saudi Arabia floods the market now, it will be suppressing prices into a structural deficit — a strategy that only makes sense if Riyadh believes current prices already reflect a risk premium it no longer deserves to collect.

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