“Changes in the forecast of Saudi Arabian oil production are crucial to the revised outlook and a major source of uncertainty in the year ahead. Saudi Arabia has indicated interest in preserving market share rather than unilaterally carrying the burden of cutting production to balance the global oil market. In addition to numerous statements by high-level Saudi officials downplaying recent price declines, the Kingdom has maintained robust production past the peak summer domestic demand season, choosing to reduce the Official Selling Price (OSP) of its crude to maintain market share rather than scale back production to balance increasing supply from the United States and Libya.”
