Latest news with #SaudiArabia-led
Yahoo
4 days ago
- Business
- Yahoo
Warren Buffett's Favorite Energy Stock Paces Bullish Oil Sector Move Amid Ukraine-Russia Attack
Warren Buffett-backed Occidental Petroleum, Diamondback Energy, APA and Halliburton led an early rally in oil stocks Monday as oil prices jumped. U.S. oil prices advanced more than 4% to around $63.60 per barrel on Monday. The move higher comes despite the Saudi Arabia-led Organization of Petroleum Exporting Countries and its allies, including Russia, announced Saturday it would raise oil output in July by the same amount as in the previous two months.
Mint
07-05-2025
- Business
- Mint
Let retail fuel prices drop to support India's growth
Global crude oil prices posted a sharp drop after Opec decided to enhance its oil supply for the second month in a row. The price of Brent crude slid sharply to under $60 per barrel on Monday, the lowest it has reached in four years, after the Saudi Arabia-led oil cartel said it would increase output by 411,000 barrels per day in June, matching its easing of May. Crude oil has been on a downtrend for months. The commodity has lost about a fifth of its value so far in 2025 amid an expected demand slump. Oil-guzzlers China and the US are engaged in a trade war that will probably slow economic activity down on both sides of the Pacific and turn oil usage sluggish. US President Donald Trump's tariffs are likely to hit other economies too, with a transition to clean energy another offtake dampener. Also Read: Rely on modern geothermal energy to power our AI ambitions For much of the global economy , signs of a glut spell good news, as cheaper oil would temper inflationary pressures. This is especially so in countries that are heavily reliant on imports, like India. All factors weighed in, crude prices could fall further, even to half the $100 target that Opec was aiming for before its shift in stance. How long might Opec's easy-oil policy last? This is far from clear. After all, it means a revenue squeeze for all members. By Saudi Arabia's past record as the cartel's enforcer of output quotas designed to boost market prices, Riyadh may only be trying to rap on the knuckles a few quota violators—like Kazakhstan and Iraq, among other suspects—so that they follow the club's rules. The kingdom can afford a brief dip in income, while its hard-up Opec partners cannot. If this is Riyadh's game, then such cheap oil may prove transitory, with tight supply likely to be back in play once quota-busters have been taught a lesson. Also Read: Climate Change and You: Drill, Baby, Drill, is back! Given the bout of geopolitical flux that the world is going through, however, Opec's shift might have another strategic purpose. Trump, who has been asking for cheaper oil, is due to visit Saudi Arabia, which is looking for favourable deals. Crude at its current level could be wielded as a double-edged lever. It helps moderate US inflation, no doubt, but if oil falls further, it would deal a blow to America's high-cost producers of shale oil—a ploy used by Opec back in 2014. This would go against Trump's drill-baby-drill agenda, although the same dynamic means Opec cannot tighten its spigot to effect a price spike without a shale-supply counter response. If Saudi-US ties improve and deals are struck, a mutually beneficial oil-price band of $60-80 per barrel could sustainably prevail. Of course, instability in West Asia could wreck this expectation; volatility could potentially arise from Israel's Gaza policy and Iran's stand-off with Tel Aviv and Washington. Exploratory patch-up parleys aimed at a nuclear pact have been held between the US and Tehran, but these have yielded little. Also Read: More than a rate cut: RBI's decision reinforces its dual mandate Even if such risks are thrown into the calculus, the likelihood that powerful players favour a benign phase of oil prices is looking up. Weak global demand makes such a scenario all the more likely. That prospect affords India an opportunity to let retail fuel prices drop so that the central bank can keep a tighter lid on inflation, thus enabling it to cut its policy rate of interest more confidently in support of economic growth. A decade ago, India's government used a global phase of cheap oil to fill its coffers by raising taxes. In today's context of growth risks, New Delhi should let it show in people's fuel bills.
Qatar Tribune
03-05-2025
- Politics
- Qatar Tribune
War-torn Yemen's PM Ahmed bin Mubarak resigns amid economic hardships
Sana'a: Yemen's Prime Minister Ahmed bin Mubarak said on Saturday he had resigned, a symbolic step signalling rifts inside the internationally recognized government amid economic hardships in the war-torn country. Bin Mubarak said on the social media platform X that he had handed his resignation to Rashad al-Alimi, the head of the Presidential Leadership Council, a Saudi-backed body holding the reins of power in the government-controlled areas in the divided country. Yemen has been embroiled in a disastrous power struggle since 2014, between government forces, supported by a Saudi Arabia-led alliance, and the Iran-linked Houthi rebels. (DPA)
New York Times
04-04-2025
- Business
- New York Times
Slumping Oil Prices Reflect Intensifying Economic Worries
Oil prices continued to fall on Friday, extending Thursday's sharp drop. Brent crude, the international benchmark, traded at its lowest level in more than three years, below $65 a barrel, a fall of almost 8 percent. Fears that President Trump's tariffs could slash global economic growth — and demand for oil as a result — were weighing on the market, analysts said. China's announcement on Friday of 34 percent retaliatory tariffs against the United States has further stoked worries that demand for oil and other commodities could be throttled by the trade turmoil. Thursday's surprise decision by a Saudi Arabia-led group of countries in the OPEC Plus cartel to accelerate planned production increases has added to the downward pressure. Essentially, the market is worried about a bearish mixture of tariffs weakening demand, compounded by growing pressure from oil-producing countries like Iraq and Kazakhstan to add to supplies. In a note to clients, analysts at Morgan Stanley said that in a recession — which is a looming possibility — demand growth for oil 'typically falls at least to zero.'
New York Times
04-04-2025
- Business
- New York Times
Slumping oil prices reflect intensifying economic worries.
Oil prices continued to fall on Friday, extending Thursday's sharp drop. Brent crude, the international benchmark, traded at its lowest level in more than three years, below $65 a barrel, a fall of almost 8 percent. Fears that President Trump's tariffs could slash global economic growth — and demand for oil as a result — were weighing on the market, analysts said. China's announcement on Friday of 34 percent retaliatory tariffs against the United States has further stoked worries that demand for oil and other commodities could be throttled by the trade turmoil. Thursday's surprise decision by a Saudi Arabia-led group of countries in the OPEC Plus cartel to accelerate planned production increases has added to the downward pressure. Essentially, the market is worried about a bearish mixture of tariffs weakening demand, compounded by growing pressure from oil-producing countries like Iraq and Kazakhstan to add to supplies. In a note to clients, analysts at Morgan Stanley said that in a recession — which is a looming possibility — demand growth for oil 'typically falls at least to zero.'
