Oil prices fell Thursday morning, just hours after a new report revealed Saudi Arabia, the world’s largest crude exporter, is considering increasing production later this year. The move comes just weeks after the nation and eight other members of OPEC+ agreed to temporarily pause oil output hikes,

Oil futures fell on Thursday, pressured after the Financial Times reported that Saudi Arabia was ready to abandon its $100-a-barrel price target as it prepares to increase production in a bid to take back market share.

Saudi Arabia’s move comes as oil prices are down nearly 5 per cent so far this year, amid increasing supply from other producers like the US.

Drivers are poised to benefit from lower prices at the pump as the world’s biggest oil exporting nation prepares to ramp up output.

Saudi Arabia is ready to abandon its unofficial price target of $100 a barrel for crude as it prepares to increase output, in a sign that the kingdom is resigned to a period of lower oil prices, according to people familiar with the country’s thinking.

Saudi Arabia is preparing to abandon its unofficial price target of $100 a barrel for crude as it prepares to increase output, the Financial Times reported on Thursday, citing people familiar with the matter.

Oil prices are back in the spotlight, perhaps for not the best reasons. Saudi Arabia, the world’s largest crude oil exporter, is set to increase production in December, abandoning its previously pursued $100 per barrel price target.