Is Saudi Arabia sabotaging the OPEC price deal?

Crude prices are going down as OPEC finds it increasingly difficult to keeps its rebellious members from violating the output cut deal. Saudi Arabia’s February production actually rose by over 250,000 bpd.  

There are concerns now that OPEC’s more rebellious members may abandon the cut deal and return to pumping as much oil as possible for the purposes of market share. Such a move by the likes of Iraq, the UAE, or even Saudi Arabia would be disastrous. 

Saudi’s apparent move to up output last month was supposedly to fire a warning shot at its rivals, to make them aware that, should they fail to comply with the cuts, Saudi can do the same. The US has emerged as the key swing producer in the oil market and a wave of positive production data is predominantly responsible for the sudden slump in prices. Looks like oil prices are going to stay low for now.

Source: Indian PetroPlus