Latest news with #OPEC+'
Arab Times
12-07-2025
- Business
- Arab Times
Bad news – oil prices plunge below $70 pb
Demand for oil is weak from major consumers in Asia, including China, Japan, and South Korea, with a reduction of more than 400,000 barrels per day. These countries are the main consumers of oil from Arabian Gulf producers, so the decline will have a major impact on Gulf economies without exception. In addition, demand in the United States has slowed by 70,000 barrels per day, along with reduced demand from Mexico. Oil prices have now fallen below $68 a barrel, a level not seen even during the 2009 financial crisis or the COVID-19 pandemic. The sad reality is that oil prices are now much lower than in previous years, possibly reflecting the impact of U.S. tariffs, which may also be affecting domestic demand. Meanwhile, Europe and emerging markets such as India, Pakistan, and Vietnam show reduced demand. This could suggest that Far East countries either have surplus oil with no available storage capacity, or they are holding off in anticipation of further price drops. This is certainly bad news for OPEC, which recently increased crude output, pushing more than one million barrels per day in excess into the market. With global oil demand at 104 million barrels per day and supply at 105.2 million, the market is now oversupplied by over one million barrels daily, and it is struggling to find buyers. As a result, prices have dropped below $68 a barrel, with no immediate signs of recovery. The question remains whether OPEC+ will return to its traditional policy of supporting crude oil prices by cutting production, a strategy that may ultimately benefit non-OPEC producers and erode OPEC+'s market share. This could lead to the same cycle of repeated policy shifts. Or will this time be different, as OPEC+ becomes more accustomed to outside borrowing? The oil market needs stability and clear guidance from OPEC+ to take the right actions that balance supply while managing oil prices at an acceptable level. This raises questions about the effectiveness of the quota system and the success of the overall policy of OPEC+. Most of the time, their measures work only briefly before the organization relaxes its stance. When oil prices rise, other producers increase output to capitalize on the situation, undermining OPEC's efforts. This cycle repeats as prices eventually harden again. The decline in oil prices is likely to continue, and nothing can change this unless OPEC+ intervenes as usual by calling for further production cuts, resulting, as always, in losses for the organization. As mentioned before, OPEC+ is relying heavily on borrowing from external banking sources to cover its deficits, a trend that is expected to continue unless oil-producing countries reduce their expenses and cut their budgets. In addition, it is important to explore new sources of income. Governments must also focus on creating jobs for recent graduates despite the drop in oil revenues. The future looks challenging, with lower oil prices and reduced income from oil. Our governments need to find alternative revenue streams and provide job opportunities for new entrants to the labor market. We must face these new realities - weaker oil prices, higher expenses, and growing numbers of job seekers. These are the new challenges facing the Arabian Gulf countries amid a period of lower oil prices.
Yahoo
11-07-2025
- Business
- Yahoo
Global Oil Supply to Rise Faster Than Expected, IEA Says
Global oil supply is set to rise three times faster than demand this year, the International Energy Agency said in its closely watched monthly report. However, seasonal factors are keeping the market tight in the short term. The Paris-based agency expects oil supply to grow by 2.1 million barrels a day this year and 1.3 million the next, above earlier estimates of 1.8 million and 1.1 million barrels a day, respectively. The revision follows OPEC+'s latest supersize output hike, though countries outside of the alliance remain the primary drivers of growth. Air India Probe Puts Early Focus on Pilots' Actions and Plane's Fuel Switches How a Pro Bono Project in Gaza Spiraled Into a Crisis for BCG Saving a Studio? This Looks Like a Job for Superman! Behind the Unraveling of Wells Fargo's Rewards-for-Rent Credit-Card Partnership Why xAI's Grok Went Rogue Supply surged by 950,000 barrels a day last month, led by Saudi Arabia's output boost as several Gulf producers ramped up exports during the Israel-Iran conflict due to fears of supply disruptions in the Strait of Hormuz. Despite these large increases, seasonal factors are tightening the market in the short term, the IEA said. Futures markets remain in steep backwardation–where near-term prices exceed later-dated contracts–and summer travel demand is keeping refining margins healthy. However, the implied global stock build of 1.74 million barrels a day in the second quarter doesn't fully reflect actual market availability. Much of the build is concentrated in China and the U.S., where strategic stockpiling and temporary export constraints limit availability to the broader market, according to the agency. OPEC+–which produces more than half of the world's crude oil–accounted for 1.9 million barrels a day of the 2.9 million barrel-a-day global output growth seen in June. The alliance agreed to accelerate its production hikes for a fourth consecutive month in August, fueling concerns about a supply glut in the coming months. However, the IEA said the decision 'failed to move markets in a meaningful way given tighter fundamentals.' Plus, given current compliance levels and compensation cuts for overproduction, the agency doesn't anticipate significant supply increases in July. Friday's report came as Brent crude trades at $69 a barrel, while West Texas Intermediate is at $67 a barrel, as uncertainty over U.S. tariffs and concerns about oversupply continue to weigh on sentiment. The IEA lowered its oil-demand growth forecast for this year to 704,000 barrels a day from 724,000 previously. Except for 2020, when Covid-19 hit, that would mark the lowest growth rate since 2009. Consumption growth slowed sharply in the second quarter–rising by just 550,000 barrels a day from 1.1 million barrels a day in the previous quarter. The deceleration was partly due to weather dynamics, as colder winter temperatures boosted demand in OECD countries in the first quarter of the year. Still, the agency flagged a more pronounced slowdown in developing countries. While it might be premature to link slower growth with the impact of U.S. tariffs, the sharpest declines were seen in countries hit hardest by trade restrictions, it said. Next year, oil demand is forecast to grow by 722,000 barrels a day from previous estimates of 739,000 barrels a day. The IEA's projections remain well below OPEC's, as the cartel forecasts global oil-demand growth of around 1.3 million barrels a day for both this year and next. Write to Giulia Petroni at Health Insurers Are Becoming Chronically Uninvestable Pentagon to Take Stake in Rare-Earth Company, Challenging China's Control Inside the Wall Street Recruitment Wars Pitting Banks Against Buyout Firms The Wall Street Machine for Financing Rooftop Solar Is Seizing Up Unilever Picks New Ben & Jerry's CEO, Escalating Dispute With Independent Board
Yahoo
10-07-2025
- Business
- Yahoo
McNally on OPEC+ Production Increase, Oil Price, Tariffs
Bob McNally, Rapidan Energy Group founder and president, discusses OPEC+'s recent decision to increase oil production for the month of August. He also talks about oil prices outlook, non-OPEC production, as well as the potential impact on markets coming from trade and tariff uncertainty. McNally speaks to Bloomberg's Joumanna Bercetche in Vienna, Austria. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
08-07-2025
- Business
- Time of India
Stock market today: Nifty50 opens in red; BSE Sensex near 83,400
Market analysts anticipate range-bound trading in the immediate future. (AI image) Stock market today: Nifty50 and BSE Sensex , the Indian equity benchmark indices, opened in red on Tuesday following uncertainties around trade deals and Donald Trump's reciprocal tariffs. While Nifty50 was near 25,450, BSE Sensex was down around 50 points. At 9:17 AM, Nifty50 was trading at 25,454.10, down 7 points or 0.028%. BSE Sensex was at 83,393.56, down 49 points or 0.059%. Market analysts anticipate range-bound trading in the immediate future, whilst noting that positive earnings visibility and robust sector performance could support selective gains during the ongoing Q1 results season. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, 'The announcement of unilateral tariffs on 14 countries and the exclusion of India from the list along with President Trump's remark that 'we are close to a deal with India' indicate that a trade deal between India and US will be announced soon. This has already been largely discounted by the market; the unknown areas are the details of possible sectoral tariffs on segments like pharmaceuticals. Market reaction will depend on these details.' 'The market is unlikely to break the 25200- 25500 range soon. Resilience within this range is strong. In the coming days market reaction will be stock-specific in response to the Q1 results." Major US indices declined significantly on Monday after US President Donald Trump announced substantial tariffs on Japan, South Korea and other trading partners, whilst Tesla shares declined following Elon Musk's announcement about establishing a new US political party. But later, Asian equities moved higher after US President Donald Trump indicated openness to further discussions following new tariff implementations on Japanese and South Korean imports. Gold prices stabilised on Tuesday following Trump's announcement of increased tariffs on Japanese, South Korean and other nations' goods, whilst elevated US treasury yields limited advances. Oil prices decreased on Tuesday following nearly 2% gains in the previous session, as market participants evaluated fresh US tariff developments and OPEC+'s higher-than-anticipated output increase for August. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Recorder
06-07-2025
- Business
- Business Recorder
Most Gulf markets gain after OPEC+ output boost, eye US tariff deadline
Most Gulf stock markets ended higher on Sunday as investors looked ahead to U.S. tariff decisions due later this week and took stock of OPEC+'s move to raise oil production output next month. Market participants are closely watching Washington, where a 90-day suspension of punitive import tariffs expires on Wednesday. An extension of the suspension could support risk sentiment, while renewed trade tension might dampen appetite for riskier assets. Saudi Arabia's benchmark index traded in a narrow range before closing 0.6% higher, driven by an 8% rally in utilities heavyweight Acwa Power. Acwa Power has signed initial agreements with Indonesia's sovereign wealth fund and state energy firm Pertamina to explore renewable energy projects potentially worth up to $10 billion. UAE stocks inch higher as geopolitical tensions ease, AI sector shines Oil giant Saudi Aramco rose 0.4%. Aramco is looking to sell up to five gas-fired power plants, Reuters reported on Sunday, citing three sources with knowledge of the matter, part of a broader effort to free up funds that could generate tens of billions of dollars. Qatar's stock index lost 0.1%, weighed down by a 1.6% fall in Qatar Navigation. Amid a cautious market backdrop, the OPEC+ group agreed on Saturday to raise output by 548,000 barrels per day in August, accelerating supply amid recent oil price volatility after Israeli and U.S. strikes on Iran. Investors also grappled with concerns following U.S. President Donald Trump's signing of massive tax and spending cuts on Friday, which is expected to increase U.S. debt by $3.4 trillion over a decade, stoking fears of inflation and interest rate volatility. Outside the Gulf, Egypt's blue-chip index added 0.3%, helped by a 3% gain in electronic payment provider Fawry. The Bahrain Bourse was closed for a public holiday SAUDI ARABIA added 0.6% to 11,316 QATAR eased 0.1% to 10,752 EGYPT added 0.3% to 32,914 OMAN gained 0.3% to 4,565 KUWAIT increased 0.3% to 9,144
