Saudi Arabia warms to production increase at Opec+ meeting

Saudi Arabia warms to production increase at Opec+ meeting

Saudi Arabia is moving towards a push for a small increase in oil production when the Opec+ group meets later on Wednesday, as it looks to bolster an improvement in relations with western powers in recent weeks.

Four people briefed on the kingdom’s thinking said a small production increase was becoming the most likely outcome in the wake of Crown Prince Mohammed bin Salman’s welcome in France last week and following US President Joe Biden’s trip to Jeddah in July.

Western countries have called on Saudi Arabia and its Gulf allies to raise oil production to help address the cost of living crisis, but Riyadh has responded cautiously, not wanting to burn through limited spare capacity while there are signs demand for oil is cooling as economies flirt with recession.

Saudi Arabia faces a difficult balancing act as it aims to rehabilitate the crown prince, the kingdom’s de facto ruler and heir to the throne, with western allies who had sought to distance themselves after the murder of journalist Jamal Khashoggi four years ago.

But it also has to manage its relationship with Russia, which has partnered with the Opec group Saudi Arabia leads since 2016, as Moscow faces a series of sanctions targeting