Russia Does Not Expect New Output Cuts in OPEC+ Meeting

Pumpjacks operating in a shale oilfield in Argentina while markets’ turmoil continues amid ambiguity in the talks regarding the US debt ceiling. (Reuters)
Pumpjacks operating in a shale oilfield in Argentina while markets’ turmoil continues amid ambiguity in the talks regarding the US debt ceiling. (Reuters)
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Russia Does Not Expect New Output Cuts in OPEC+ Meeting

Pumpjacks operating in a shale oilfield in Argentina while markets’ turmoil continues amid ambiguity in the talks regarding the US debt ceiling. (Reuters)
Pumpjacks operating in a shale oilfield in Argentina while markets’ turmoil continues amid ambiguity in the talks regarding the US debt ceiling. (Reuters)

Russian Deputy Prime Minister Alexander Novak said on Thursday he expected no new steps from the OPEC+ group of oil producers at its meeting in Vienna on June 4, Russian media reported, after the group announced a significant output cut last month.

 

Novak also said that high US interest rates and a slower-than-expected Chinese economic recovery were holding back oil prices from rising further, according to Reuters.

 

Saudi Arabia and other OPEC+ oil producers announced cuts of more than one million barrels per day in April after crude prices in March fell towards $70 a barrel, the lowest in 15 months.

 

Novak said he expected Brent price to be above $80 a barrel by the end of the year, the state-owned news agency RIA reported. He said current prices of $75-76 reflected the market's assessment of the global macroeconomic situation.

 

OPEC+ will hold an in-person meeting in Vienna this year.

 

"This will be the first face-to-face meeting in six months, we are waiting, as usual, for an assessment of the situation in the market," Novak was quoted as saying by Izvestia newspaper.

 

"But I don't think that there will be any new steps, because just a month ago certain decisions were made regarding the voluntary reduction of oil production by some countries due to the fact that we saw the slow pace of global economic recovery."

 

He also said he hoped that oil demand will increase in the summer.

 

"But I repeat once again: we do not have the task of inflating prices - there is the task of balancing in order to ensure the interests of both producers and consumers."

 

Sending another signal that no action might be required from OPEC+ at its next meeting, Russian President Vladimir Putin said on Wednesday that energy prices were approaching "economically justified" levels.

 

Oil prices were little changed on Thursday as uncertainty over whether the US will avoid a debt default weighed against the prospect of further OPEC+ production cuts.

 

Meanwhile, US House Speaker McCarthy said Thursday that negotiations had improved regarding raising the US debt ceiling, though several issues remain unresolved.

 

Negotiators for Democratic President Joe Biden and McCarthy held what both sides called productive talks on Wednesday to try to reach a deal to raise the United States' $31.4 trillion debt ceiling.

 

Oil price gains were limited by news that Britain's stubbornly high inflation rate fell by less than expected last month, according to official data that raised the chances of more interest rate hikes.

 

In the previous session, oil prices were backed by Saudi Arabia's energy minister’s statement when he called on the short-sellers betting oil prices will fall to "watch out". Some investors took this as a signal that OPEC+ could consider further output cuts at a meeting on June 4.

 

There was also an unexpected significant drop in US crude oil inventories. This was reported by the Energy Information Administration (EIA).



Gulf States Accelerate Adoption of Unified Digital Government Platforms

A Tawakkalna app events in Saudi Arabia (Asharq Al-Awsat)
A Tawakkalna app events in Saudi Arabia (Asharq Al-Awsat)
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Gulf States Accelerate Adoption of Unified Digital Government Platforms

A Tawakkalna app events in Saudi Arabia (Asharq Al-Awsat)
A Tawakkalna app events in Saudi Arabia (Asharq Al-Awsat)

Gulf governments are moving swiftly to leverage modern technology in reshaping citizen-government relations, with a strong push toward digital transformation and more efficient, user-centric public services.

At the forefront of this shift are unified government applications that constitute comprehensive digital platforms that combine smart technology with seamless usability.

According to a recent study by Strategy& Middle East, a member of the PwC network, these platforms are no longer optional but have become strategic necessities.

The study, titled “Unified Government Apps: Smart Choices for Services and Cost Control,” highlights that citizens and residents can now complete services such as issuing birth certificates, renewing business licenses, or applying for social support within minutes, without physically visiting a government office.

Tawakkalna: A Saudi Model

Saudi Arabia’s Tawakkalna app, originally launched as a health tool during the COVID-19 pandemic, has since evolved into a comprehensive digital gateway offering over 1,100 government services.

Dr. Esam Al-Wagait, Director of the National Information Center at the Saudi Data and Artificial Intelligence Authority (SDAIA), noted the Kingdom’s aim to build a proactive digital government powered by AI.

“We are creating an integrated system that uses advanced technology to predict citizen needs and deliver personalized experiences aligned with smart and sustainable city goals,” he said.

Engineer Saleh Mosaibah, Deputy Director of the National Information Center, added that unified platforms enhance inter-agency collaboration, reduce operational costs, strengthen cybersecurity, and boost Saudi Arabia’s regional and global competitiveness.

Challenges and Solutions

Despite progress, the study noted operational and technical challenges remain, particularly around user expectations for faster, smoother service. Repeated logins and redundant data entry were identified as key obstacles.

Engineer Hani Zein, Partner at Strategy& Middle East, stressed the need for seamless, single-entry platforms powered by artificial intelligence.

“Unified interfaces are the future. They improve service delivery, enhance quality of life, and align with Gulf digital transformation goals,” he said.

Investment and Private Sector Integration

Experts stress that building such applications requires significant investment in IT infrastructure, data integration, and cybersecurity. “These are not just tech expenses, they are investments in smarter, more cost-efficient governance,” said Mosaibah.

The private sector also presents growth opportunities. Licensed companies could offer services through government platforms for a fee, or strategic partnerships could bring in private funding and innovation without straining public budgets.

Building a Sustainable Model

To ensure sustainability, Zein recommends a three-pillar approach: an agile operational model inspired by startups, strong legal and financial frameworks, and robust risk management systems. These foundations, he said, enable governments to move quickly, innovate freely, and maintain public trust.

With the right strategy, Zein and Mosaibah believe Saudi Arabia is well-positioned to set global standards for integrated digital government, offering a world-class experience for citizens and residents alike.