OPEC last week underlined that Asia’s continued strong economic growth would account for virtually all the growth in demand for oil this year.
Back in March, Saudi and Iran announced they had agreed to restore diplomatic ties in a deal brokered by China, ending a seven-year rift. The Saudi Arabia-Iran deal–one of the latest in a series of geopolitical realignments that have lately been going on in the Middle East–has been widely lauded, with the U.S. National Security Council spokesman John Kirby saying, “To the degree that this arrangement can lead to an end to the war in Yemen, to the degree that it can help prevent Saudi Arabia from having to defend itself against attacks, to the degree that could deescalate tensions – all that’s to the good side of the ledger.
Crude oil prices moved modestly higher in Asia pre-noon trade today following the news that Saudi Arabia would extend its voluntary oil production cuts through August.
From the moment that China offered Saudi Crown Prince Mohammed bin Salman (MbS) a face-saving way out of the Saudi Aramco initial public offering disaster that he had created, as analysed in depth in my new book on the new global oil market order, the relationship between the two countries has grown ever stronger.
One of my 2023 energy predictions was that the U.S. would set a new annual oil production record this year. As we approach the midpoint of the year, this prediction is still tracking toward being accurate.
Saudi Arabia, the world’s top crude oil exporter, saw its crude exports drop to a five-month low in April, a month before the first of the voluntary Saudi cuts began in May, data from the Joint Organizations Data Initiative (JODI) showed on Monday.
Saudi Arabia has long had deep ties with the East and the West thanks to its strong position in the international energy arena. The Kingdom has been an oil and gas superpower for decades and is now focusing its attention on the development of its green energy capacity, to lead in the world of renewables.
Oil prices will not average more than $80 per barrel in the second half of this year, despite the most recent production cut announced by Saudi Arabia, the U.S. Energy Information Administration (EIA) said in its latest Short-Term Energy Outlook (STEO) released this week.
Several buyers in Asia are looking to buy spot oil cargoes from Russia, Africa, Brazil, or the United States after the world’s top crude exporter, Saudi Arabia, unexpectedly raised its official selling prices for its crude going to Asia in July.
Following a suspense-filled weekend in Vienna, where OPEC oil ministers attempted to downplay media attention, global oil markets remain uncertain about the direction of oil prices.