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 Fourth Milling Company (MC4) said on Thursday it is set to raise $229 million from an initial public offering (IPO) on its local stock exchange.

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.

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.

Prices of oil continue to drop after a new report revealed Saudi Arabia is considering increasing production later this year.

Oil prices slumped on Thursday, reversing earlier gains, on news Saudi Arabia, the world's biggest crude exporter, will give up on its price target in preparation for raising output. Brent crude futures were down $1.

Oil prices are down nearly 5 per cent so far this year, amid increasing supply from other producers, especially the US