OPEC+ agrees to 547,000 bpd oil output hike for September
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Asharq Al-Awsat
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Oil Slips as OPEC+ Output Hikes Counter Russia Disruption Concerns
Oil slipped about 1% on Tuesday as rising OPEC+ supply and worries of weaker global demand countered concern about US President Donald Trump's threats to India over its Russian oil purchases. The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day for September, a move that will end its most recent output cut earlier than planned. Brent crude futures were down 70 cents, or 1%, to $68.06 a barrel at 1052 GMT, while US West Texas Intermediate crude slipped 79 cents, or 1.2%, to $65.50. Both contracts fell by more than 1% on Monday to settle at their lowest in a week. Trump on Monday again threatened higher tariffs on Indian goods over the country's Russian oil purchases. New Delhi called his attack "unjustified" and vowed to protect its economic interests, deepening a trade rift between the two countries. Oil's move since Trump's threat indicates that traders are sceptical of a supply disruption happening, said John Evans of oil broker PVM in a report. He questioned whether Trump would risk higher oil prices. "I'd call it a stable market for oil," said Giovanni Staunovo, analyst at UBS. "Assume this likely continues until we figure out what the US president announces in respect to Russia later this week and how those buyers would react." India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million bpd from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources. Trump's threats come amid renewed concerns about oil demand and some analysts expect faltering economic growth in the second half of the year. JPMorgan said on Tuesday the risk of a US recession was high. Also, China's July Politburo meeting signalled no more policy easing, with the focus shifting to structural rebalancing of the world's second-largest economy, the analysts said.
Argaam
12 hours ago
- Argaam
Aramco resilient despite volatility thanks to low costs, financial strength: CEO
Saudi Arabian Oil Co. (Saudi Aramco) has demonstrated strong operational resilience despite the recent market volatility, supported by a low-cost structure, strong financial position, and disciplined execution. Addressing the H1 2025 earnings call attended by Argaam, Nasser said Aramco's adjusted net income reached $50.9 billion, with free cash flow at $34.4 billion, maintaining a robust performance in the face of global turmoil. Additionally, the Saudi oil giant's net debt stood at 6.5%, while return on capital employed hit 19%, according to the top executive. He also pointed out that global oil demand averaged 105.3 million barrels per day (bpd) from January through August. The rate is expected to continue growing and rise by more than 2% in the second half of this year, driven by seasonal factors and improving economic activity in China and the US. Separately, global inventories remain tight at 3.6 billion barrels, supporting continued demand momentum through 2025, the CEO further stated. Aramco maintained 100% reliability in crude and product deliveries in H1 2025, with the second-quarter production amounting to 12.8 million barrels of oil equivalent per day (boe/d), up by 475,000 boe/d from Q1 2025. Executive VP and CFO Ziad Al-Murshed said Aramco achieved $3.5 billion in operational savings through SABIC integration, with ongoing portfolio restructuring across the group amid industry overcapacity. Aramco continues to shift capital from low-return assets to higher-yielding opportunities, including infrastructure projects that have drawn investor interest despite modest returns. Al-Murshed added that Aramco expanded its retail footprint with 250 new branded stations since 2024, and maintained H1 2025 capex at $25.5 billion, in line with its full-year target of $52-58 billion. At present, the Saudi oil giant is exploring multi-currency bond issuances, domestic sukuk, and secured export credit financing to support strategic growth, he underlined.
Arab News
17 hours ago
- Arab News
Saudi Arabia's non-oil growth stays strong despite softer July PMI
RIYADH: Saudi Arabia's non-oil business activity continued to expand in July, even as growth momentum softened, with the Purchasing Managers' Index easing to 56.3, down from 57.2 in June, a market tracker showed. Compiled by S&P Global for Riyad Bank, the PMI remained well above the neutral 50-point threshold, signaling ongoing improvement in private sector operating conditions. The robust growth in Saudi Arabia's non-oil business activity aligns with the broader goals of Vision 2030, which aims to diversify the Kingdom's economy and reduce its reliance on oil revenues. This comes as Saudi Arabia's economy grew by 3.9 percent year on year in the second quarter of 2025, driven by strong non-oil sector performance, according to flash estimates released last month by the General Authority for Statistics. Naif Al-Ghaith, chief economist at Riyad Bank, said: 'Saudi Arabia's non-oil economy remained on a solid growth track in July, supported by higher output, new business, and continued job creation. Although the headline PMI edged down to 56.3 from 57.2 in June, the reading still pointed to a healthy level of activity across the private sector.' He added: 'Firms continued to benefit from ongoing project work, resilient domestic demand, and focused marketing efforts, even as some indicators showed signs of cooling compared to earlier in the year.' Al-Ghaith noted that the slight dip in the headline index was primarily due to a moderation in new order growth. He said businesses were still experiencing improved demand, though 'competitive pressures and more cautious client spending weighed on the pace of expansion.' He also pointed out that external demand was softer and that purchasing activity had increased at a slower pace. On the employment front, Al-Ghaith said firms continued to expand their workforce to support rising activity, with 'July marking another solid month of hiring as companies worked to keep operations running smoothly.' He further noted that firms expect growth to continue over the coming year, underpinned by steady demand, strong pipelines, and Vision 2030-linked investments. Employment is expected to remain supportive, although rising input costs and wages led to price hikes — especially in services, construction, and manufacturing. The PMI report also showed that non-oil private sector output grew strongly in July, driven by ongoing projects and new orders. However, the pace of expansion was the slowest in three and a half years. Order books continued to develop, buoyed by solid domestic demand and active sales efforts. However, growth was partially offset by intensifying competition, lower footfall, and the first drop in export orders in nine months, as firms faced challenges in attracting new foreign clients. In response to rising activity and backlogs, firms recorded another sharp increase in hiring, following June's 14-year employment peak. The uptick was attributed to capacity constraints and growing workloads. Inventory levels rose significantly in July, particularly among manufacturers and wholesale and retail firms, even as new input purchases slowed. Delivery times improved but at a slower rate, in part due to customs delays. Input prices in the Kingdom's non-oil sector increased strongly during the month — albeit at a slightly slower pace than in the second quarter — driven by steep salary hikes to retain staff. This contributed to a rise in selling prices for the second straight month.
