Shura committee discusses impact of US tariffs on Oman's economy
Chaired by Said Ahmed Al-Sharqi, head of the Economic and Financial Committee, the members discussed the major challenges faced by the industrial sector due to increased export costs and loss of competitiveness in the U.S. market, one of Oman's key trade partners.
The meeting was held as part of regular sessions to monitor economic developments and review high-priority financial issues, in light of the regional and international developments affecting global markets.
The committee also addressed the indirect effects of these tariffs on supply chains, emphasising the importance of coordination among relevant authorities to develop a comprehensive plan to support affected businesses and explore alternative markets.
The meeting included an analytical review of the initial government revenue projections in light of the recent decision by the OPEC+ alliance to increase crude oil production, examining the potential impact of this decision on global oil prices and its effect on the state's budget.
This comes as part of ongoing efforts to enhance financial sustainability and reduce reliance on oil revenues.
Said Ahmed Al-Sharqi emphasised the importance of cooperation between the council and the government in addressing these critical issues, providing effective recommendations to support the national economy, and ensuring its stability in the face of external challenges.
He noted that the committee will continue to monitor changes in the global economic landscape and developments in the upcoming period.
© Muscat Media Group Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
10 hours ago
- Khaleej Times
Global oil markets face rising supply glut amid weak demand
The global oil market is bracing for what the International Energy Agency (IEA) warns could be the biggest supply glut since the pandemic, with crude inventories projected to swell through late 2025 and early 2026. On Thursday, Brent crude futures were close to a two-week high and up 43 cents, or around 0.6 per cent, at $67.27 a barrel at 1203 GMT. US West Texas Intermediate (WTI) crude futures were up 45 cents, or 0.7 per cent, at $63.16 a barrel. Both contracts climbed over 1 per cent in the prior session. The draw signals resilient demand, yet gains remain limited as geopolitical tensions cloud the outlook. Energy traders weigh the prospect of shifting global supply flows, including stronger Russian exports and higher Opec+ output, which have pressured crude to a three-month low, down over 10 per cent this month. Demand growth continues to underperform expectations, while production — both from Opec+ and non-Opec+ suppliers — is surging to multi-year highs. In its August oil market report, the IEA once again cut demand growth forecasts, marking the sixth downgrade this year. Global oil demand is now expected to rise by just 680,000 barrels per day (bpd) in 2025 and by 700,000 bpd in 2026. Since the start of the year, the agency has lowered its growth outlook by a combined 350,000 bpd. Weak consumption across major economies and softer-than-expected demand from emerging markets such as China, Brazil, Egypt and India underpin the downward revisions. While jet fuel demand is enjoying a summer boost of over 2 per cent in the US and Europe, it has not been sufficient to offset wider demand weakness. At the same time, global supply is on the rise. The IEA has lifted its projection for supply growth this year to 2.5 million bpd, an upward revision of 370,000 bpd from July. The eight Opec+ members, including Saudi Arabia, Russia, the UAE and Iraq, agreed earlier this month to add 547,000 bpd in September, fully unwinding the 2.2 million bpd in cuts first introduced in November 2023. By the end of September, the entire cutback programme will be rolled back. Yet the bulk of new barrels are expected from non-Opec+ producers. The US, Brazil, Canada and Guyana are all lifting production, with American natural gas liquids (NGLs) and offshore fields in South America and the Atlantic basin leading the growth. Non-Opec+ supply is expected to rise by 1.3 million bpd in 2025 and a further 1 million bpd in 2026. According to the IEA, Brazil will surpass the US as the single largest contributor to non-Opec+ growth in 2026, with an increase of 160,000 bpd compared to America's 130,000 bpd. The mismatch between supply and demand is beginning to show in inventories. Global observed oil stocks increased by 1.5 million bpd in the second quarter, with Chinese crude inventories swelling by 900,000 bpd and US gas liquids adding another 900,000 bpd. The IEA forecasts that inventories will build at a record pace of nearly 3 million bpd next year — surpassing even the glut of 2020, when the Covid-19 pandemic crushed demand. Saxo Bank strategist Ole Hansen described the outlook as 'the most bloated market balances in years.' The US Energy Information Administration (EIA) shares this view. In its latest short-term outlook, the EIA projected inventory builds averaging more than 2 million bpd in the fourth quarter of 2025 and the first quarter of 2026, up 800,000 bpd from last month's forecast. Reflecting the weaker balance, the EIA cut its Brent crude price forecast for 2026 to $51 per barrel, down from $58 previously. It expects low prices to eventually force supply adjustments from both Opec+ and some non-Opec producers by mid-2026. The divide between the IEA and Opec on demand outlooks remains stark. The IEA expects global demand in 2026 to reach just 104.4 million bpd, while Opec forecasts consumption of 106.5 million bpd. For this year, Opec has kept its estimate unchanged at 1.29 million bpd in demand growth, nearly double the IEA's forecast. The cartel also sees non-Opec supply growth at just 800,000 bpd in 2025 and 600,000 bpd in 2026, well below the IEA's projections. This divergence underscores the uncertainty hanging over the market: Opec paints a more bullish picture of resilient consumption and tighter balances, while the IEA is firmly bearish. Adding to the bearish sentiment, geopolitical developments are weighing on market psychology. Oil prices fell by nearly a dollar on Friday, with Brent closing at $65.85 and West Texas Intermediate at $62.80, ahead of the Alaska summit between US President Donald Trump and Russian President Vladimir Putin. Trump said the two leaders agreed to push directly for a peace settlement in Ukraine rather than a temporary ceasefire, signalling that Russian oil exports would continue largely undisturbed. He also indicated that sanctions on countries buying Russian oil, including China and India, would be held off for now. Analysts noted that uninterrupted Russian flows are bearish for prices, though markets may see only a limited near-term reaction until further clarity emerges from follow-up talks in Washington with Ukrainian President Volodymyr Zelenskiy and European leaders. Despite the looming supply glut, crude prices have not yet fully reflected the weaker fundamentals. Stocks at pricing hubs remain below historical averages, while record refinery runs this summer helped absorb extra barrels. Traders are cautious, with many awaiting signals on sanctions policy and geopolitical negotiations before adjusting positions. Market watchers are of the view that overall outlook for oil markets remains fragile. Demand is stagnating, supply is accelerating, and inventories are swelling at rates not seen since the pandemic. Unless demand surprises on the upside or Opec+ undertakes fresh coordinated cuts, the imbalance could persist deep into 2026, they argued. Prices are likely to remain under pressure, testing the ability of producers — particularly those with higher costs — to weather an extended period of subdued revenues. For consuming nations, however, the prospect of lower energy prices could provide some relief at a time of sluggish global economic growth, they said.
Zawya
a day ago
- Zawya
Saudi Arabia's June crude exports fall to lowest since March
Saudi Arabia's crude oil exports slipped in June to their lowest level in three months, according to data from the Joint Organizations Data Initiative (JODI) released on Wednesday. Crude exports from the world's largest oil exporter fell to 6.141 million barrels per day, from 6.191 million bpd in May. Saudi Arabia's crude output for June was 9.752 million bpd, up from 9.184 million bpd in May. Saudi refineries' crude throughput was 2.703 million bpd, down 18,000 bpd from May's 2.721 million bpd, the data showed, while direct crude burning increased by 185,000 bpd to 674,000 bpd. Saudi Arabia and other members of OPEC provide monthly export figures to JODI, which publishes them on its website. OPEC+, comprising OPEC and allies such as Russia, this month agreed to raise oil production by 547,000 bpd for September, the latest in a series of accelerated output hikes to regain market share, as concerns mount over potential supply disruptions linked to Russia. Eight OPEC+ members began raising output in April with a hike of 138,000 bpd, followed by larger-than-planned increases of 411,000 bpd in May, June and July, 548,000 bpd in August and now 547,000 bpd for September. The eight members are Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman. The International Energy Agency said last week that world oil supply would rise more rapidly than expected this year and next as OPEC+ members further increase output and supply from outside the group grows. (Reporting by Sherin Elizabeth Varghese in Bengaluru. Editing by Mark Potter)
Zawya
a day ago
- Zawya
Kuwait eyes China for new petrochemical projects: report
Kuwait is considering investing in new petrochemical projects in China as part of a drive to expand its overseas hydrocarbon assets and diversify sources of income, a Kuwaiti newspaper has reported. The Kuwait Petroleum Corporation (KPC), which manages the OPEC member's hydrocarbon sector, has presented proposals for such projects to China, the Arabic language daily Alseyassah said, citing KPC sources. 'The offer submitted by KPC for a large petrochemical project in China has been accepted by the Chinese authorities…it has also been approved by KPC board of directors,' the paper said. It did not provide details of that project but said KPC is also considering similar investment opportunities in Brazil and Latin America. (Writing by Nadim Kawach; Editing by Anoop Menon) (
