Latest news with #AbdulazizbinSalman
The Star
2 hours ago
- Business
- The Star
Saudi Arabia tightens grip on Opec+ by pushing through oil surge
RIYADH: When Prince Abdulaziz bin Salman was appointed Saudi Arabia's Energy Minister six years ago, he vowed to heed even the smallest of the Organisation of the Petroleum Exporting Countries and its allies (Opec+). But at the cartel's meeting last weekend, even the most powerful members couldn't block Riyadh's designs. The kingdom steered the group to agree the third super-sized monthly output hike in a row, despite dissent from a faction led by Russia. The Saudis are doubling down on a historic shift, driving oil prices lower as they seek to punish the alliance's quota cheats and reclaim their share of global markets. The policy change dragged crude futures to a four-year low below US$60 a barrel in April, affecting everyone from American drivers to petrochemical users in Asia. It's forcing oil producers to confront an alarming prospect: Just how quickly might the kingdom restart millions more idled barrels? The meeting's outcome marks a new peak in the Saudis' long-running dominance of the Opec+. It raised questions over the future of the alliance and the complex web of relations between Crown Prince Mohammed bin Salman and Russia's Vladimir Putin, as well as US President Donald Trump. 'Saudi Arabia is playing a big role,' Thamir Ghadhban, Iraq's former Deputy Prime Minister for Energy Affairs and Oil Minister from 2018 to 2020, said in an interview before Saturday's meeting. 'There is a sort of power now for the Saudis within Oprc+.' This story is based on conversations with current and former delegates from the organisation and its partners, industry experts and government officials. The latest Opec+ policy shift began on April 3, when Saudi Arabia and seven other Opec+ nations stunned oil markets with the announcement of a supply hike for May of 411,000 barrels a day – triple the scheduled amount. The decision came even as global markets buckled amid faltering Chinese demand and Trump's trade war, causing oil prices to plunge briefly below US$60 a barrel. Rather than build consensus for this reversal, the Saudis had summoned members to an impromptu video conference and unveiled their plans with just days – or in some cases hours – of notice. Officials said they were left in the dark about what was driving the U-turn, offering a range of motives to explain why the world's most stalwart defender of high oil prices was now labouring to sink them. Some representatives said Riyadh simply wanted to appease Trump, who has urged Opec to lower fuel costs and toured Gulf states last month amid a cascade of multi-billion dollar deals. Others believed the kingdom had lost patience with overproduction by Kazakhstan and Iraq, and intended to discipline them through the 'controlled sweating' of lower prices. People familiar with the matter said Riyadh is motivated by the desire to claw back the market share it has relinquished over the years to US shale drillers. The internal confusion persisted when the Saudis convened another video conference in May, resulting in an agreement for a second production surge the following month. This unilateralism contrasts with the early years of Opec+, when negotiations at its headquarters in Vienna could sprawl into the night, or subsequent days, until a compromise between the position of different members was reached. Even though Riyadh typically won, there was at least room for debate. 'Definitely the bigger producer wielded more power, but they were aware that other members have a say and have a role to play,' said Iraq's Ghadhban. 'We had a say. We used to discuss, we used to disagree.' By the time key Opec+ members held their latest monthly video-conference last Saturday, fissures were emerging. Russia, the only member with comparable oil production and geopolitical clout to Saudi Arabia, was supported by Oman and Algeria as it argued for Opec+ to hold output steady in July and wait to assess the impact of earlier increases. But with no other opposition, the Saudi proposal for to another 411,000 barrels a day was approved. While Russia and its allies acquiesced, and delegates denied there was any real split, there was no doubt who carried the day. — Bloomberg
Arabian Post
21 hours ago
- Business
- Arabian Post
Saudi Push Reshapes OPEC+ Oil Production Strategy
Arabian Post Staff -Dubai Prince Abdulaziz bin Salman's tenure as Saudi Arabia's energy minister has marked a decisive shift in OPEC+ dynamics, culminating in a significant production decision that underscores Riyadh's growing influence within the cartel. The latest OPEC+ meeting saw Saudi Arabia successfully advocate for a third consecutive super-sized monthly output increase, a move that has reshaped the alliance's approach to oil supply management despite opposition from key players such as Russia. Since assuming office six years ago, Prince Abdulaziz has positioned Saudi Arabia as a firm leader within OPEC+, emphasising discipline and adherence to agreed production quotas. This approach contrasts with the historically more conciliatory stance the kingdom sometimes took within the cartel. The current strategy reflects a broader ambition to reclaim market share lost to non-compliant members and emerging producers outside the alliance's remit. ADVERTISEMENT The decision to boost output again—by approximately 500,000 barrels per day—signals a willingness to absorb short-term price volatility in favour of longer-term market dominance. Riyadh's strategy appears geared towards punishing those within OPEC+ who have routinely exceeded their quotas, thereby undermining the cartel's collective efforts to control supply and sustain prices. Saudi Arabia's emphasis on stringent compliance aims to reinforce OPEC+ cohesion, even at the risk of dampening crude prices temporarily. Russia's resistance to the output increase highlighted fissures within OPEC+ as Moscow has consistently advocated a more cautious production approach, citing concerns over oversupply and the fragility of global demand recovery. Russia's stance reflects a balancing act between maximising revenue and preserving the alliance's unity. However, Saudi Arabia's assertiveness in pushing the hike through demonstrates Riyadh's readiness to leverage its dominant production capacity and market position to set the cartel's agenda. Global oil markets responded to the output hike by seeing a downward adjustment in prices, reflecting the increased supply entering the market. This shift contrasts with the supply restraint policies of previous years, which had been instrumental in stabilising prices amid fluctuating demand and geopolitical uncertainty. Market analysts note that the Saudi-led increase could signal a new phase in OPEC+ policy, one in which Riyadh is prioritising market share recovery over price support. The broader context of this development involves multiple factors. The energy transition and climate policies worldwide have added pressure on oil producers, particularly those heavily reliant on hydrocarbons. Saudi Arabia's move suggests a pragmatic response to these challenges, aiming to maximise current revenues while investing in diversification strategies such as renewable energy and petrochemicals. The kingdom's position as the de facto swing producer within OPEC+ gives it substantial leverage. Saudi Arabia can modulate output to influence global prices, a power that has been increasingly evident under Prince Abdulaziz's stewardship. The kingdom's vast spare capacity and low production costs enable it to sustain output increases that smaller or higher-cost producers cannot match. ADVERTISEMENT The decision also reflects Saudi Arabia's geopolitical considerations. Energy policy remains a critical tool of regional influence and international diplomacy. By asserting control over OPEC+ production decisions, Riyadh reinforces its leadership role not only within the cartel but also in broader energy markets, which remain pivotal to global economic stability. The internal dynamics of OPEC+ have evolved since the alliance's formation in 2016. Initially established to coordinate between OPEC members and major non-OPEC producers like Russia, the group has faced ongoing challenges balancing competing national interests. Saudi Arabia's push for discipline and market share signals a new era where Riyadh asserts a more centralised command, even if that risks tensions with key allies. The output increase also responds to market signals, including stronger oil demand forecasts and inventory levels that have stabilised. By expanding supply, Saudi Arabia aims to pre-empt supply shortages that could push prices beyond levels palatable to consuming nations and industries. This approach seeks to sustain demand growth by ensuring adequate supply and avoiding disruptive price spikes. Critics argue that the output hike risks destabilising markets by flooding them with excess supply amid uncertainties in global economic growth, inflation, and energy transition timelines. They caution that prolonged lower prices could undermine investment in the oil sector, affecting long-term supply security. However, proponents view Saudi Arabia's move as a necessary recalibration to reinforce market order and assert control over a fragmented supply landscape. The ripple effects of the Saudi-led decision extend beyond OPEC+ members. Non-OPEC producers, including the United States shale industry, watch closely as changes in cartel policy impact global price signals and investment decisions. The output hike could influence the pace and scale of shale production, which remains a significant factor in global supply dynamics. As the alliance navigates these complexities, Saudi Arabia's approach under Prince Abdulaziz bin Salman sets a clear tone of leadership and strategic resolve. The kingdom's readiness to push through output increases despite opposition illustrates its confidence in wielding its production capacity as a geopolitical and economic tool. This assertive posture aligns with Saudi Arabia's broader economic vision, including the ambitious Vision 2030 plan to diversify its economy and reduce dependence on oil revenues. Managing oil production to balance market share and price stability forms a critical part of this strategy, enabling the kingdom to finance diversification projects and maintain fiscal stability.
Saudi Gazette
26-05-2025
- Politics
- Saudi Gazette
Saudi energy minister meets with COP30 president-designate
Saudi Gazette report RIYADH — Saudi Minister of Energy Prince Abdulaziz bin Salman held a meeting with Andrea Correia de Lago, President-designate of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP30), scheduled to be held this year in November in Belém, in the Amazon region of Brazil. During the meeting, the two sides discussed opportunities for cooperation in the field of climate action and joint efforts to achieve the goals and principles of the United Nations Framework Convention on Climate Change and the Paris Agreement, to reach comprehensive, balanced, and practical outcomes that take into account the national circumstances of member states. They also reviewed Saudi Arabia's initiatives and efforts to address the impacts of climate change, such as: exploiting renewable energy sources, managing, reducing, and removing emissions through the "Green Saudi Arabia" and "Green Middle East" initiatives, implementing the circular carbon economy approach and technologies, and other national and regional programs and initiatives. Holding the COP30 UN Climate Change Conference in the Amazon rainforest region of Brazil has symbolic significance. It harks back to the early days of international efforts to protect the environment, with the pivotal "Earth Summit" held in Rio de Janeiro, Brazil, in 1992, which led to the establishment of three environmental treaties on climate change, biodiversity, and desertification.
Leaders
07-05-2025
- Business
- Leaders
Saudi-US Investment Forum to Convene during Trump's Riyadh Visit in May
The Saudi-US Investment Forum will be held on May 13, 2025, on the occasion of the state visit of the US President, Donald Trump, to Saudi Arabia. The forum will take place at the King Abdulaziz International Conference Center in Riyadh, drawing senior Saudi and American investors to reinforce the bilateral partnership that has evolved over nearly a century. The Saudi-US Investment Forum's program will cover a wide range of fields, including clean energy; technology and artificial intelligence (AI); advanced manufacturing; financial services; venture capital and innovation; aerospace and defense; and healthcare and life sciences. The event will feature ministerial dialogues, CEO panels, and exclusive executive roundtables, covering a variety of topics, such as green tech, digital infrastructure, biotech and defense. Keynote speakers from Saudi Arabia include Energy Minister, Prince Abdulaziz bin Salman; Sports Minister, Prince Abdulaziz bin Turki Al-Faisal; and Investment Minister, Khalid Bin Abdulaziz Al-Falih. They also include Finance Minister, Mohammed Al-Jadaan; Communications Minister, Abdullah Al-Swaha; Industry Minister, Bandar Ibrahim Alkhorayef; Saudi Aramco CEO, Amin Nasser; and ACWA Power Chairman, Mohammad A. Abunayyan. Meanwhile, distinguished US speakers will take part in the event, including BlackRock CEO, Larry Fink; Citigroup CEO, Jane Fraser; IBM CEO, Arvind Krishna; President and CIO of Google and Alphabet, Ruth Porat; and Qualcomm CEO, Cristiano Amon. The Saudi-US Investment Forum serves as a significant platform for strengthening economic ties between Saudi Arabia and the US. This plays a key role in further strengthening the strategic relations between both countries which have flourished over the last eight decades since the first meeting between King Abdulaziz bin Saud and US President, Franklin D. Roosevelt, on the USS Quincy in 1945. Short link : Post Views: 26
Saudi Gazette
07-05-2025
- Business
- Saudi Gazette
Riyadh to host Saudi-U.S. Investment Forum during Trump's visit on May 13
Saudi Gazette report RIYADH — The Saudi-U.S. Investment Forum will take place at the King Abdulaziz International Conference Center in Riyadh on May 13, serving as a key platform to reinforce economic ties between Saudi Arabia and the United States. Coinciding with the U.S. President Donald Trump's state visit to the Kingdom, the forum is expected to draw senior Saudi and American officials, global CEOs, entrepreneurs, and investors to advance strategic cooperation across priority sectors. The agenda features a full day of ministerial dialogues, executive panels, and leadership roundtables focused on energy, finance, technology, healthcare, manufacturing, and national-scale development initiatives. The forum opens with a session on Saudi-U.S. relations, followed by high-level discussions on energy transition, market stability, and fiscal-monetary policy coordination. Ministers from both governments will explore how joint policymaking can support economic resilience amid evolving global challenges. Among the key speakers are Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman, Minister of Finance Mohammed Al-Jadaan, Minister of Communications and IT Abdullah Al-Swaha, Minister of Investment Khalid Al-Falih, and Minister of Sport Prince Abdulaziz bin Turki Al-Faisal. Prominent U.S. participants include BlackRock Chairman and CEO Larry Fink, Citigroup CEO Jane Fraser, IBM Chairman and CEO Arvind Krishna, and Google and Alphabet President and CIO Ruth Porat. The forum's core sessions will address the future of AI, digital infrastructure, and industrial strategy. A dedicated panel will examine the development of hyperscale data centers and AI applications, while another session will explore the redesign of global financial architecture through cross-border capital flows and regulatory innovation. Later sessions will focus on energy security and sustainability, including joint efforts in renewable energy and clean technology. A panel on industrial resilience will highlight opportunities for cooperation in advanced manufacturing, critical minerals, and localized supply chains. Additional programming will feature briefings on Saudi Arabia's preparations for hosting Expo 2030 and the 2034 FIFA World Cup, both presented as anchor projects within the Kingdom's broader Vision 2030 economic diversification agenda. Roundtable discussions will run in parallel to the plenary program, covering sectors such as biotechnology, digital health, aerospace, education, tourism, and venture capital. These sessions are designed to foster direct engagement between U.S. and Saudi executives and identify investment pathways in emerging and strategic industries. The forum will conclude with formal recognition of key partners, the signing of bilateral agreements, and closing remarks by senior leaders from both countries.
