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Saudi Arabia Defers $1.2B Oil Payment By Pakistan

Pakistan has been experiencing an economic crisis since 2022, characterized by high inflation, high debt, job cuts, and a struggling fiscal position. At some point the country was facing a severe shortage of foreign exchange reserves and risked defaulting on its debt obligations. Three years ago, Pakistan set a target for cheap Russian crude to make up two-thirds of its oil imports, but has been unable to achieve it hampered by a shortage of foreign currency and limitations at its refineries and ports. The cash-strapped South Asian nation became Russia’s latest customer after Russia started offering discounted urals following sanctions by the west.

Saudi Arabia and OPEC+ Brace for Impact as Trump Plans New Oil Moves

The new President has long made his dislike well known — privately and/or publicly — of the OPEC organisation, of several Saudi Arabian policies, and of China’s increased influence over both. In Saudi Arabia’s case, this effectively stems from the breaking of the core agreement made between it and the U.S. on 14 February 1945 between the then-U.S. President, Franklin D. Roosevelt, and the then-Saudi King, Abdulaziz bin Abdul Rahman Al Saud.