Latest news with #Saudis'
The Star
3 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
Scottish Sun
3 days ago
- Sport
- Scottish Sun
Transfer news LIVE: Liverpool ANNOUNCE Frimpong, Bayern ‘confident of Wirtz', Diaz ‘wanted by Saudis'
IN AND OUT IN AND OUT Transfer news LIVE: Liverpool ANNOUNCE Frimpong, Bayern 'confident of Wirtz', Diaz 'wanted by Saudis' Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) THE thrills and spills of the summer transfer window are upon us with some huge deals in the pipeline. Liverpool have officially completed their first signing this summer as they have ANNOUNCED Jeremie Frimpong. Meanhwhile, Bayern Munich are reportedly still confident of completing a deal for Florian Wirtz despite his strong links to Liverpool. In other news, Liverpool winger Luis Diaz is wanted by Al-Nassr this summer. Plus, we have updates on where Cristiano Ronaldo will end up after confirming his departure from Saudi side Al-Nassr. BEST ONLINE CASINOS - TOP SITES IN THE UK Follow ALL the latest news, moves and completed deals with our live blog below...
Scottish Sun
4 days ago
- Business
- Scottish Sun
Transfer news LIVE: Alexander-Arnold to join Real early for £10m, Bayern ‘confident of Wirtz', Diaz ‘wanted by Saudis'
IN AND OUT IN AND OUT Transfer news LIVE: Alexander-Arnold to join Real early for £10m, Bayern 'confident of Wirtz', Diaz 'wanted by Saudis' Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) THE thrills and spills of the summer transfer window are upon us with some huge deals in the pipeline. Trent Alexander-Arnold will join Real Madrid early for a fee of £10million ahead of the Club World Cup. Meanhwhile, Bayern Munich are reportedly still confident of completing a deal for Florian Wirtz despite his strong links to Liverpool. In other news, Liverpool winger Luis Diaz is wanted by Al-Nassr this summer. Plus, we have updates on where Cristiano Ronaldo will end up after confirming his departure from Saudi side Al-Nassr. BEST ONLINE CASINOS - TOP SITES IN THE UK Follow ALL the latest news, moves and completed deals with our live blog below...
Yahoo
15-05-2025
- Business
- Yahoo
Saudi Arabia's $600 billion promise to the U.S. needs oil prices to stay high—which will likely anger Trump
Saudi Arabia promised to invest $600 billion in the U.S. during President Donald Trump's trip there. But the kingdom is currently running a deficit, and boosting its spending to promised levels would be extremely difficult unless the price of oil goes higher—complicating Trump's math. If there's one thing President Donald Trump likes almost as much as big economic deals, it's low gas prices. His current trip to the Gulf states is bringing those two goals into conflict. The administration has touted an investment from Saudi Arabia described as totaling $600 billion or, in one case, $1 trillion. It's a massive number: At $1 trillion, the investment would be equivalent to the entire value of Saudi Arabia's sovereign wealth, or the nation's GDP. For the nation to be able to sustain that level of investment in the U.S. long-term, it would likely require hiking currently-low oil prices—a prospect sure to anger Trump. 'The number is impressive, but its significance will ultimately depend on the depth, timeline, and the price of oil,' John Sfakianakis, chief economist and head of research at the Gulf Research Center in Riyadh, told Fortune. 'Unless oil revenues rise, financing such commitments will strain public finances unless managed prudently.' Oil currently accounts for about 60% of the kingdom's revenue, according to Gulf News. "These pledges will of course have to face up to reality as indeed they are large,' Maya Senussi, lead economist at Oxford Economics, told Fortune in an email. 'In our view, the headwinds to public finances from lower energy prices and focus on domestic Vision 2030 priorities mean the announced pledges will likely only partly materialise within the four-year timeframe." (Vision 2030 aims to diversify the Saudi economy through massive public-works projects, whose cost has been pinned as high as $1.5 trillion.) In order to break even on spending, the state of Saudi Arabia needs the price of oil to be at least $96 a barrel, Bloomberg estimated. (Other estimates put the number above $100 a barrel.) Brent crude, the international benchmark, is currently trading at about $65 a barrel. That price was $79 in January, when Trump took office—a number the president thought was too high. 'I'm also going to ask Saudi Arabia and OPEC to bring down the cost of oil,' he told the World Economic Forum on Jan. 23. 'You got to bring it down, which, frankly, I'm surprised they didn't do before the election,' Trump said. 'That didn't show a lot of love.' That love was maybe some months late in coming, but it has arrived, with OPEC announcing production increases for May and June that pushed the price of oil lower. The Saudis' move 'looks like [an] unspoken gift to Trump,' wrote Reuters columnist Ron Bousso. Lower gasoline prices mean 'Trump has already scored his big Saudi win,' Clayton Seigle, a senior fellow in the Energy Security and Climate Change Program at the Center for Strategic and International Studies, wrote Wednesday. How long that price stays low remains to be seen. Many observers have cast doubt on the $600 billion deal, calling it unusually large. A fact sheet provided by the White House details investments totaling $282 billion, including the $142 billion in promised U.S. arms sales. Paul Donovan, chief economist of UBS Global Wealth Management, wrote this week the $600 billion plan has 'a fanfare of spin, which does not necessarily change anything in reality. The announcement does not require economic forecasts to change.' When it comes to the $1 trillion in spending that Trump reportedly sought, Ziad Daoud, Bloomberg's chief emerging markets economist, told The New York Times it was 'far-fetched.' As it is, $600 billion is roughly 60% of Saudi Arabia's GDP and about 40% of its current foreign assets, according to Tim Callen, a visiting fellow at the Arab Gulf States Institute and former IMF official. Meeting that target would require the country to quintuple the portion of foreign imports it sources from the U.S. over the next four years, Callen wrote earlier this year. While 'it seems likely that Saudi investments in the United States will grow,' he said, 'the scale of the commitment looks too large.' Complicating the commitment is Vision 2030, an ambitious program of public works and economic diversification whose cost has been estimated at $1.3 trillion. These domestic demands have pushed the kingdom into deficit spending. Now add the falling price of oil, and Saudi Arabia's deficit could double by the end of this year to $70 billion, Goldman Sachs' Farouk Soussa told CNBC. To be sure, Saudi Arabia can afford some short-term deficit spending, but it will likely look to close the gap, either by cutting back projects, selling assets, or raising taxes, Soussa said. Trump claims Saudi Arabia bought $450 billion of U.S. exports during his first term, a figure that Callen, of the Arab Gulf States Institute, says was not 'anywhere near' reality. Trump would hardly be the first public official to announce a bombastic public project only to be disappointed by reality. Politicians love to tout their business-friendly bona fides, so much so that debunking these claims has become a cottage industry. 'Let's be honest, announcements are always at the high end. I don't think the actual effect is as big as the headline. But the sign is positive,' Simon Johnson, a Nobel prize-winning MIT economist, told Fortune. Johnson previously suggested CEOs get on Trump's good side by announcing development deals in swing states, even if those promises later turn out to be 'vaporware.' During Trump's first term, 'there were a lot of promises that didn't come to fruition,' Johnson said. 'But that is kind of the nature of the business: If you're making big investments, they don't happen overnight.' This story was originally featured on Sign in to access your portfolio
Toronto Sun
14-05-2025
- Business
- Toronto Sun
Saudis treat Trump to his very own McDonald's: 'HOW'S THIS REAL LIFE?'
Mobile McDonalds in Riyadh, Saudi Arabia, custom-made for U.S. President Donald Trump's visit to the Middle East. Photo by Mike Wagenheim/i24NEWS / X Saudi Arabia rolled out the red carpet and golden arches for U.S. President Donald Trump as he kicked off his four-day visit to the Middle East. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account A custom-built mobile McDonald's was brought in for Trump's arrival in Riyadh on Tuesday — for both the president's use as well as for the journalists covering the Gulf trip, Newsweek reported. Mike Wagenheim, a correspondent at i24NEWS, posted footage of the McDonald's truck on X. 'Yes, it's a mobile @McDonalds here in Riyadh,' he captioned the clip. People on social media were shocked by the lengths Saudis went to welcome Trump. 'How's this real life?' one account asked, while others described the move as 'incredible' and 'awesome.' Some noted how former president Joe Biden never received the same treatment. 'They respect the man,' one person wrote about Saudis' feelings toward Trump. 'They wouldn't have done anything like this for Biden. We are back to our strength ways.' Another added: 'They ghosted Biden. They rolled in a McDonald's on wheels for Trump. That's not just diplomacy…. that's straight-up icon treatment.' Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Trump's love of the fast-food chain is no secret, and it's apparent the Saudis have been paying attention. He appealed to working-class voters during the 2024 campaign when he donned an apron, worked the fryer, and handed customers their food at the drive-thru at a Pennsylvania stop last October. The publicity stunt was in response to Kamala Harris' claims that she worked at the fast-food chain as a college student. Republican presidential nominee former President Donald Trump serves french fries as an employee looks on during a visit to McDonald's in Feasterville-Trevose, Pa., Sunday, Oct. 20, 2024. (Doug Mills/New York Times/The Associated Press) Photo by Doug Mills/the New York Times / THE ASSOCIATED PRESS In October 2023, during Trump's fraud trial in Manhattan, several large bags of McDonalds were spotted being brought into court, Fox News reported. During his first term, the president served a buffet of fast-food options when he welcomed national college football champions the Clemson Tigers to the White House in 2019. This advertisement has not loaded yet, but your article continues below. Son-in-law Jared Kushner revealed in his memoir that Trump requested McDonald's following his COVID-19 diagnosis and recovery in 2020. 'I knew he was feeling better when he requested one of his favourite meals: A McDonald's Big Mac, Filet-o-Fish, fries and a vanilla shake,' Kushner wrote. RECOMMENDED VIDEO Trump arrived in Riyadh amid much fanfare, as the nation sent fighter jet escorts to welcome the president's aircraft to the ground. Margo Martin, a White House official, posted video of the escort online, declaring, 'Saudi F-15's providing honorary escort for Air Force One!' Saudi Crown Prince Mohammed bin Salman greeted Trump on the tarmac that was adorned with a lavender — not red — carpet. Read More The two leaders then retreated to a grand hall at the Riyadh airport, where Trump and his aides were served traditional Arabic coffee by waiting attendants wearing ceremonial gun belts. Trump signed a host of economic and bilateral cooperation agreements, as he focused on dealmaking with a key Mideast ally, while he also shared concerns about Iran's nuclear program as the war in Gaza dragged on in the background. Relationships Toronto Maple Leafs Celebrity Editorial Cartoons Columnists
