Saudi Energy Minister: OPEC+ to Do Whatever Necessary to Support Oil Market

Saudi Energy Minister Prince Abdulaziz bin Salman (SPA)
Saudi Energy Minister Prince Abdulaziz bin Salman (SPA)
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Saudi Energy Minister: OPEC+ to Do Whatever Necessary to Support Oil Market

Saudi Energy Minister Prince Abdulaziz bin Salman (SPA)
Saudi Energy Minister Prince Abdulaziz bin Salman (SPA)

Saudi Energy Minister Prince Abdulaziz bin Salman said OPEC+ would do whatever is necessary to support the oil market.

The Minister was speaking on the sidelines of the 8th OPEC International Seminar in Vienna on Wednesday.

On Monday, Saudi Arabia said it would extend the one million-barrel-per-day (bpd) production cut it had initially flagged for July into August, while Russia announced a 500,000-bpd decline in exports next month.

The Minister said Saudi Arabia makes voluntary cuts "because there was another, more urgent demand from the market, or another, more necessary expectation that OPEC + should act."

"If we want to be fair to everyone and if we want everyone to work together, we have to make sure that they maintain their focus on the most important topics and long-term issues. Deviating attention to another issue will lead to imbalances, which is why we chose to take this job on a provisional basis," he said.

The Minister noted that in June 2020, Saudi Arabia, UAE, Kuwait, and Oman made a voluntary contribution for a month and voluntary reduction that began in February 2021 and lasted for three months.

"We made by gradually easing this reduction until July 2021."

"I ask you where we would have been today had it not been taken these steps at the time. I have reassured the market that there is a necessity for this position," he added.

Prince Abdulaziz explained that Russia's reduction was voluntary, pointing out that the simultaneous decrease in supply by the Kingdom and Russia shows the strong cooperation between the two nations.

"Russia's oil cut is meaningful because it affects exports," he said.

The Minister said that Saudi Arabia is no longer playing the role of a heavyweight producer, but instead, OPEC + plays this role.

He added that enhancing transparency depends on seven independent external bodies accredited to follow up on the countries' production in the oil cut agreement.

A recent report from the International Energy Agency (IEA) indicated that Russia did not comply with production cuts during May, and the Saudi Energy Minister warned that the data could disrupt the market.

In turn, UAE Energy Minister Suhail al-Mazrouei stressed that oil-producing countries have a more comprehensive view of the market and present a realistic outlook of the supply-demand balance.

Mazrouei explained that the periodic meetings of OPEC and OPEC+ help limit fluctuations and restore market balance and stability through cooperation and joint efforts, especially as OPEC and OPEC+ member countries account for around 40 percent of the global oil output.

"We are constantly working to monitor markets and relevant shifts to ensure taking timely and effective measures, which help boost stability across the market and drive economic development worldwide," Mazrouei added in a statement carried by WAM news agency.

He promised that the additional oil production and export cuts announced by Saudi Arabia and Russia earlier this week would help balance the market.

The total production cuts currently amount to more than 5 million bpd, or the equivalent of five percent of global oil production of about 100 million bpd.

Aramco CEO, Amin al-Nasser, pointed out that the corrective measures taken by Saudi Arabia will impact in the coming months, announcing plans to increase gas production by 50 to 60 percent by 2030.

Also at the conference, the OPEC Secretary-General, Haitham al-Ghais, said that the organization is keen on stabilizing the market, reducing the environmental footprint, and moving towards a sustainable and comprehensive energy transition.

In his welcome speech at the conference, Ghais added that "sustainability" revolves mainly around balance and meeting current generations' needs without compromising that of future generations.

He reviewed the importance of oil in global energy, the industry's primary role in reducing carbon emissions, and OPEC's efforts to achieve market stability, reduce the environmental footprint, and move towards a sustainable and comprehensive energy transition.



IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.


Copper Falls, Set for Worst Week Since March on AI Rout

Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
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Copper Falls, Set for Worst Week Since March on AI Rout

Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)

Copper dropped on Friday and was set for its biggest weekly drop in London since March, as a rout in technology stocks battered markets.

Benchmark three-month copper on the London Metal Exchange was down 1.3% at $13,663 a metric ton by 0700 GMT. That placed it on track to fall 3.44% in the week, Reuters said.

The most-traded copper contract on the Shanghai Futures Exchange fell 1.08% to 106,830 yuan ($16,018.17) a ton.

The weakness reflects worries over AI investment, ‌with copper increasingly ‌influenced by "sentiment towards data center expansion," said ‌Craig ⁠Lang, principal analyst ⁠at CRU.

Technology shares were battered after Democratic wins in the US midterms fueled concerns that new regulatory oversight could cap the AI buildout.

On the other hand, supply constraints cushioned copper's decline.

"I would be cautious about calling this a sustained correction, given ongoing mine supply challenges and exceptionally tight ⁠metal availability outside the US," Lang said.

Copper stocks ‌in SHFE-monitored warehouses <CU-STX-SGH> fell by ‌over 24% this week to just 33,848 tons — the lowest ‌in almost three years. The closely watched Yangshan copper ‌premium <SMM-CUYP-CN>, a gauge of appetite for imports into key consumer China, increased to $210 a ton on Thursday, matching its record high.

Smelters in the country are facing a double squeeze of negative treatment ‌charges and lower sulfuric acid prices.

Meanwhile, warehouse inventories outside the US have been drawn ⁠down as ⁠material was pulled into the country ahead of a potential tariff on imports of refined copper.

"These physical constraints should provide some support against weaker investor sentiment," Lang said.

Among LME metals, aluminium lost 0.54%, zinc lost 1.42%, lead lost 0.45%, nickel dipped 0.23% and tin gained 0.83%.

On the SHFE, aluminium nudged down only 0.04%, zinc lost 1.35%, lead was little changed, down only 0.03%, nickel rose 2.14% and tin dropped 3.45%.

SHFE inventories were down across the board this week, led by sharp drops in aluminium <AL-STX-SGH> and lead <PB-STX-SGH>.