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Jordan News
7 days ago
- Business
- Jordan News
Reuters: OPEC+ Reaches Preliminary Agreement to Increase Oil Output - Jordan News
Reuters: OPEC+ Reaches Preliminary Agreement to Increase Oil Output Two sources within the OPEC+ alliance reported that the group has reached a preliminary agreement to increase oil production by 548,000 barrels per day starting in September. اضافة اعلان Saudi Arabia, Russia, and six other key members of the alliance are expected to finalize this decision during a scheduled meeting on Sunday, in what analysts interpret as a strategic move to reclaim market share amid stable oil prices. This planned hike follows a series of similar increases that began in April, signaling a notable policy shift from years of production cuts aimed at propping up prices. Shift from Production Cuts to Market Reclamation In recent years, OPEC+—which includes the Organization of the Petroleum Exporting Countries (OPEC) and allied producers—agreed on three major rounds of voluntary production cuts, totaling around 6 million barrels per day, in an effort to stabilize or boost global oil prices. However, since April, a core group dubbed the "Willing Eight" (Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman) has increasingly focused on regaining market share rather than limiting output. The anticipated September increase mirrors the agreed quota rise for August. According to Giovanni Staunovo, an analyst at UBS, the market has largely priced in the expected increase, with Brent crude expected to remain around $70 per barrel following Sunday's decision. Future Production Still Uncertain Despite the planned September hike, the group's strategy beyond September remains unclear. ING's Warren Patterson suggested the "Willing Eight" might pause further increases after September, citing potential oversupply risks. He warned that starting in October, the market may face a significant surplus in oil supplies, and OPEC+ should be cautious not to exacerbate the situation. Staunovo noted that actual output between March and June was lower than the allowed quota increases, further helping to support prices. Bjarne Schieldrop, another analyst, highlighted OPEC+'s ongoing challenge: 'balancing the need to recapture market share without triggering a collapse in oil prices that would hurt revenues.' Geopolitical and Economic Pressures The oil market is currently navigating a highly volatile environment, affected by: Geopolitical tensions, such as the recent 12-day Iran-Israel war Seasonal demand surges during the summer President Donald Trump's shifting trade policies, including threats of 100% tariffs on countries buying Russian oil, such as India In a recent statement, Trump gave Russia a 10-day ultimatum to end the Ukraine war, threatening new sanctions and trade restrictions if it fails to comply. These developments may influence future OPEC+ policies, but analysts believe the group will only act in response to actual supply disruptions, not just price hikes driven by risk premiums. In Summary Preliminary deal: OPEC+ to increase output by 548,000 bpd in September Goal: Regain market share amid stable prices Caution: Potential oversupply starting October Geopolitics: U.S. trade pressure and Middle East tensions complicate forecasts Next steps: Sunday's meeting to finalize decisions; further actions depend on market and geopolitical shifts
New Indian Express
01-07-2025
- Business
- New Indian Express
Sensex rises 118 points, Nifty 50 reaches 25,535; markets open higher on Tuesday
CHENNAI: Indian markets opened slightly higher on Tuesday, supported by gains in Asian equities and improved global sentiment ahead of the upcoming US tariff deadline on July 9. The Sensex rose 118 points to 83,724 at the opening bell, while the Nifty 50 added 18 points to reach 25,535. This positive start reflected a 0.6% rise in the MSCI Asia ex-Japan index and followed a strong finish on Wall Street, fueled by hopes of progress in U.S. trade talks. Meanwhile, oil prices edged lower on expectations of increased output from OPEC+—a welcome sign for India, which relies heavily on crude imports. Additionally, oil prices declined on expectations of an OPEC+ output increase—a favorable development for India, which is a major crude importer. The US dollar softened ahead of key US economic data and an upcoming vote on President Trump's fiscal reforms, which also supported emerging markets like India. On the domestic front, sentiment was supported by hopes for a breakthrough in India–US trade talks. Investors are closely watching for any early resolution ahead of the July 9 deadline. Among stocks in focus, Apollo Hospitals gained over 4% in early trade following news of a planned spin-off and listing of its digital health and pharmacy unit within the next 18–21 months. The parent company plans to retain a 15% stake in the new entity.
New Indian Express
01-07-2025
- Business
- New Indian Express
Sensex rise 118 points, Nifty 50 reaches 25,535; markets open higher on Tuesday
CHENNAI: Indian markets opened slightly higher on Tuesday, supported by gains in Asian equities and improved global sentiment ahead of the upcoming US tariff deadline on July 9. The Sensex rose 118 points to 83,724 at the opening bell, while the Nifty 50 added 18 points to reach 25,535. This positive start reflected a 0.6% rise in the MSCI Asia ex-Japan index and followed a strong finish on Wall Street, fueled by hopes of progress in U.S. trade talks. Meanwhile, oil prices edged lower on expectations of increased output from OPEC+—a welcome sign for India, which relies heavily on crude imports. Additionally, oil prices declined on expectations of an OPEC+ output increase—a favorable development for India, which is a major crude importer. The US dollar softened ahead of key US economic data and an upcoming vote on President Trump's fiscal reforms, which also supported emerging markets like India. On the domestic front, sentiment was supported by hopes for a breakthrough in India–US trade talks. Investors are closely watching for any early resolution ahead of the July 9 deadline. Among stocks in focus, Apollo Hospitals gained over 4% in early trade following news of a planned spin-off and listing of its digital health and pharmacy unit within the next 18–21 months. The parent company plans to retain a 15% stake in the new entity.
Arabian Post
10-06-2025
- Business
- Arabian Post
Saudi Oil Flow to China Inches Down Amid OPEC+ Expansion
Saudi Arabia will export about 47 million barrels of crude to China in July, marking a modest decline of one million barrels compared with June allocations. Despite the slight reduction, this remains the third consecutive month of elevated shipments to the world's largest crude importer, underscoring Riyadh's resurgence in securing market share. This shift follows a decision by OPEC+—a coalition of the Organisation of the Petroleum Exporting Countries and key allies—to increase collective oil production by 411,000 barrels per day in July, mirroring identical output hikes in May and June. Within this framework, Saudi Arabia has strategically adjusted its allocations across refiners within China's vast energy landscape. State-owned giants Sinopec and PetroChina, alongside the Aramco-Sinopec joint-venture Fujian refinery, are designated to receive greater volumes in July. Conversely, independent processors such as Rongsheng Petrochemical, Hengli Petrochemical, and Shenghong Petrochemical face reductions. This redistribution highlights a prioritisation of established, integrally linked buyers amid a backdrop of expanding OPEC+ supply. ADVERTISEMENT Although Aramco has yet to comment publicly, the company's allocation strategy aligns with broader pricing adjustments. Saudi Arabia recently reduced the official selling price of its Arab Light grade to Asia for July, setting it at $1.20 per barrel above the Oman/Dubai benchmark—20 cents less than June's pricing and the lowest benchmark since May. This pricing decision reflects two intertwined considerations: increased global supply and sustained domestic demand. Internally, Saudi Arabia ramps up crude consumption for power generation and refinery throughput during the summer months. This seasonal domestic demand can restrict exportable volumes, prompting a more conservative OSP reduction compared with the broader cutbacks anticipated by markets. Meanwhile, the continued output expansion under OPEC+ serves both competitive and geopolitical objectives, helping Riyadh reclaim influence in key markets. OPEC+ members have collectively unwound approximately 1.37 million bpd of previously implemented cuts since April, which form part of an initial 2.2 million bpd reduction plan initiated in early 2025. The restored output aims to counterbalance growing global non-OPEC production and mitigate domestic political pressure—particularly from the US, which has advocated for greater oil supply. Notably, seven other nations in the coalition also agreed to this third consecutive increase, reinforcing OPEC+'s strategic shift towards output recovery. Market analysts indicate that larger increases in crude availability have begun to weigh upon Middle Eastern benchmarks, with the June OSP developments 'less aggressive' than anticipated, partly due to Saudi Arabia's own intensified refinery runs. Global demand dynamics further complicate the outlook, with potential softening in Chinese economic indicators and US-China trade negotiations influencing futures pricing. This recalibrated export approach reflects a nuanced balancing act for Saudi Arabia: securing long-term contracts with major Chinese refiners while managing domestic consumption and contributing effectively to global supply strategies. Analysts point out that the kingdom has largely succeeded. Brent crude futures have remained stable around $65 per barrel, with occasional upward pressure following confirmation of July's OPEC+ increment. ADVERTISEMENT Within China, diversions in allocations have specific implications. State refiners, many with government backing and deeper logistical links to Aramco, stand to gain from increased shipments. Independent refiners, essential drivers of private-sector energy demand, are compelled to source a greater share of crude from alternative suppliers such as Russia, the Middle East, or emerging West African producers. Their reduced access to Saudi barrels may translate to thinner margins amid said competition. Chinese crude throughput data underscores this evolving dynamic. Earlier this year, the nation's refiners reached record-high processing levels—nearing 14.8 million barrels per day—yet faced maintenance schedules and weakening export margins for oil products. These factors have cooled demand from some processors, slightly alleviating pressure on upstream supply chains. Within OPEC+, calls for coherence and strict quota compliance persist. Saudi Arabia has publicly censured members like Kazakhstan for exceeding agreed production levels, underlining Riyadh's insistence on an equitable distribution of output responsibilities. Expectations remain that OPEC+ may complete the unwind of its 2.2 million bpd voluntary cuts by the end of September, though some analysts caution that internal discipline could falter, potentially reshaping future output and pricing trajectories. Against this backdrop, Saudi Arabia's adjusted supply to China illustrates both strategic recalibration and geographic realignment. By trimming shipments marginally from independents, bolstering allocations to state-linked refiners, recalibrating export prices, and synchronising with collective OPEC+ policies, the kingdom is reinforcing its position in a price-sensitive, competitive marketplace. July's allocations represent not a retreat but a fine-tuned manoeuvre in a complex global chessboard. Saudi Arabia is both maintaining influence and responding to evolving domestic and international demands. While Chinese imports continue at robust levels, the marginal dip signals a deliberate redistribution rather than a market-driven contraction.
International Business Times
24-05-2025
- Business
- International Business Times
Oil Prices Rise Slightly Ahead of US Holiday as Traders Eye Iran Talks and OPEC+ Output
Oil prices were slightly higher on Friday as American traders adjusted their positions before the long Memorial Day weekend, a time when demand for travel and fuel tends to pick up. Brent crude settled at $64.78 a barrel, 34 cents higher. West Texas Intermediate (WTI) also advanced, rising 33 cents to settle at $61.53. Much of the rise was related to short-covering ahead of the holiday. Analysts added that the beginning of the U.S. summer driving season usually lifts gasoline demand, offering firm support to oil prices at this stage of the year. Meanwhile, markets were closely monitoring the ongoing nuclear talks between the United States and Iran. Discussions in Rome ended without being able to seal a final agreement. The talks focus on restraining Iran's nuclear program in return for sanctions relief — that could end up eventually pushing up Iran's oil exports. But the situation has stayed murky with little progress made. The atmosphere is tense, and some officials have said if one hopes for diplomacy to fail, they would be open to considering military options. This takes us to the threat of potential Middle East supply disruptions, which serves as the latest risk to the oil market. Meanwhile, the organization of oil-producing nations, known as OPEC+—members of the Organization of the Petroleum Exporting Countries as well as allies like Russia — is to meet next week. We expect the group to announce an additional increase of 411,000 barrels per day for July. The prospective production increase is one step in a phased return to the cartel's cuts. OPEC+ has already added about one million barrels a day back to the market, starting in April. The group is targeting to unwind through to the end of October a 2.2 million bpd cut that the producers had made in voluntary output cuts, which was initially implemented to curb sliding prices amid economic downturns worldwide. OPEC+ raising production could further pressure prices lower if demand fails to keep up. Meanwhile, a breakdown in nuclear negotiations may cause a jump in geopolitical risks and potentially curb any future oil supply from Iran.
