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.

Saudi Arabia is reportedly ready to abandon its unofficial price target of $100 a barrel for crude as it prepares to increase 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's upcoming oil production increase is set to push prices down further, signalling a shift from its $100 per barrel target to focus on market share. Global oil markets brace for change.

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.