Saudis sacrifice to broker oil production cuts

Until recently, the nation has insisted it wouldn’t unilaterally cut output until others agreed to contribute. All that has changed

Saudis sacrifice to broker oil production cutsSaudi Arabia is back in its role as the swing crude oil producer of the world. Until recently, the nation has insisted it wouldn’t unilaterally cut output until others, including Russia, agreed to contribute. But all this changed – almost overnight. On Jan. 4, while the ministers from Organization of Petroleum Exporting Countries and its…

Dark days ahead for oil-rich Gulf economies

Dark days ahead for oil-rich Gulf economiesOil-dependent economies are in a real quandary. Sliding markets, lowering demand and strong output capacities are set to hit the single-product, oil-rich economies of the Middle East, the International Monetary Fund (IMF) said in a recent report. These oil-rich Persian Gulf states are now expected to see a six per cent real gross domestic product…

China the big winner in world oil price calamity

The Chinese have stockpiled huge reserves of low-priced oil, giving them significant geopolitical leverage over Russia and Saudi Arabia

China the big winner in world oil price calamityWith the major stakeholders – Saudi Arabia, Russia and the United States – emerging badly bruised from the last round of the crude oil price war, a new world order is set to emerge. The cost of the battle has been immense to all three. In April, as the battle erupted, the value of Saudi…

Oil-rich Saudis squeezed by Trump

Current oil production cuts can’t continue for long or the Saudis, and others, won’t balance their budgets

Oil-rich Saudis squeezed by TrumpThe U.S. is putting extreme pressure on the major oil producers, Saudi Arabia in particular, to cut output, firm up crude markets and ensure the continuity of the U.S. shale revolution. But on the other hand, the administration of United States President Donald Trump doesn’t want oil prices to go much higher. In an election…

Oil market finally showing signs of life again

President Donald Trump’s efforts at salvaging the United States shale oil sector seem to be paying off

Oil market finally showing signs of life againSaudi Arabia, Russia and their allies have opted to roll over crude oil output cuts for another month – until the end of July. Markets have somewhat firmed up. Oil prices have inched up. And President Donald Trump’s efforts at salvaging the United States shale oil sector seem to be paying off. The U.S. president…

Politics helped drive latest Saudi oil production cut

The need to generate cash, along with political pressure, compelled the Saudis to make some bitter decisions

Politics helped drive latest Saudi oil production cutSaudi Arabia has capitulated. A few moves here and there, in Washington and elsewhere, made the trick work. Saudi Arabia made a surprise announcement last week that it would cut its crude oil output by a further one million barrels per day (bpd) from planned June levels, “voluntarily.” This takes the total Saudi production cuts…

Crude oil cuts finally made, but to what end?

As world demand declines thanks to the COVID-19 pandemic, oil countries struggle to control prices with production cuts

Crude oil cuts finally made, but to what end?Too little, too late? On Thursday, the Organization of Petroleum Exporting Countries (OPEC) and the Russia led non-OPEC oil producers, commonly termed OPEC+, took an unprecedented step to agree to cut the global crude oil output by 10 million barrels a day (bpd). The next day, after a five-hour-long virtual meeting, G20 energy leaders endorsed…

Who will blink first in crude oil crisis?

For four years, the U.S. has firmly rejected joining the producers’ club to curb output. It can’t remain aloof any longer

Who will blink first in crude oil crisis?Energy diplomats are on overdrive, seeking to bring an end to the senseless global crude oil war. Russia and Saudi Arabia have flooded the market, driving down oil prices. A G20 virtual meeting of energy leaders is being urged, with International Energy Agency executive director Fatih Birol reportedly propelling the idea. Former U.S. Energy Information…

Oil glut, COVID-19 crisis punishing world crude prices

With demand and supply shock acting simultaneously, crude markets are imploding. And this is just the tip of the iceberg

Oil glut, COVID-19 crisis punishing world crude pricesThe global oil war is on and no one seems to be blinking. Saudi Arabia is set to increase its crude oil exports in May by about 600,000 barrels per day (bpd), bringing its total petroleum exports to 10.6 million bpd, an official at the Saudi Arabian Energy Ministry told the Saudi Press Agency. Russia…