Saudi Arabia Calls for ‘Proactive Measures’ in Oil Market

Saudi Energy Minister Prince Abdulaziz bin Salman addresses the opening session of the Middle East and North Africa (MENA) Climate Week in Riyadh, on October 8, 2023. (Photo by Fayez Nureldine / AFP)
Saudi Energy Minister Prince Abdulaziz bin Salman addresses the opening session of the Middle East and North Africa (MENA) Climate Week in Riyadh, on October 8, 2023. (Photo by Fayez Nureldine / AFP)
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Saudi Arabia Calls for ‘Proactive Measures’ in Oil Market

Saudi Energy Minister Prince Abdulaziz bin Salman addresses the opening session of the Middle East and North Africa (MENA) Climate Week in Riyadh, on October 8, 2023. (Photo by Fayez Nureldine / AFP)
Saudi Energy Minister Prince Abdulaziz bin Salman addresses the opening session of the Middle East and North Africa (MENA) Climate Week in Riyadh, on October 8, 2023. (Photo by Fayez Nureldine / AFP)

Saudi Energy Minister Prince Abdulaziz bin Salman has said it was necessary to be "proactive" on the oil market and attempt to bring stability to it, while adding that oil producers do not target prices.

In a Russian TV interview aired Thursday, Prince Abdulaziz said the market was unpredictable and "cannot be left on its own."

"We are not magicians. It is hard to forecast what will happen on the market even in half a year," he told Rossiya-24 state TV.

The minister said the need to act on the oil market depended on its volatility, adding that attempts to target prices had failed in the 1980s.

Saudi Arabia and Russia have agreed to continue with voluntary oil supply cuts of 1.3 million barrels per day, or more than 1 percent of global demand, to the end of the year.

Abdulaziz said the terms of the deal would be evaluated every month.

In the same interview, Russian Deputy Prime Minister Alexander Novak said Russia's deal with OPEC+ had had a stabilizing effect.

He noted that the balance between supply and demand is fragile and could be affected by the slowdown in global economic growth.

Abdulaziz stated that the two countries seek to strengthen trade relations, while Novak explained that Russia and Saudi Arabia discussed the mutual lifting of visa restrictions.

Meanwhile, Novak said on Thursday that Russia's pledges to the OPEC+ group to cut its oil exports included a reduction in oil products, according to news agencies.

Novak's statement stoked confusion over Russia's plans to reduce oil supplies.

In his original announcement of the plans to cut oil exports by 300,000 barrels per day (bpd), Novak had not mentioned oil products but had spoken only about oil.

"When we talk about the oil market and production, oil is produced and then supplied for processing. Therefore, of course, everything is considered together. The final product, of course, takes into account the volumes that are produced," Novak said in response to a question on whether oil products were included in the export reductions, according to Interfax news agency.

It would be easier for Moscow to cut overall exports of crude oil and fuel after Russia announced on Sept. 21 a ban on fuel exports to tackle domestic shortages and high prices. It lifted the ban on most oil products last week.

- OPEC maintains demand expectations

On Thursday, OPEC stuck to its forecast for relatively substantial growth in global oil demand in 2023 and 2024, citing signs of a resilient world economy this year and expected further demand gains in China.

The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report that world oil demand will rise by 2.25 million barrels per day (bpd) in 2024, compared with growth of 2.44 million bpd in 2023.

Both forecasts were unchanged from last month.

A lifting of pandemic lockdowns in China has helped oil demand rise in 2023.

OPEC consistently forecasts stronger demand growth for next year than other forecasters, such as the International Energy Agency (IEA).

"In 2024, solid global economic growth, amid continued improvements in China, is expected to boost oil consumption further," OPEC said in the report.

The report also said that demand in the rest of this year and next could take a hit in some parts of the world and trimmed its forecasts for total world demand in the current quarter and the first three months of 2024.

OPEC said: "Looking ahead and despite the usual seasonal rise in heating oil demand, ongoing uncertainty and economic developments in OECD Europe and other areas are expected to impact oil demand in the remainder of 2023 and 2024."

The OPEC report also said OPEC oil production rose in September despite pledged OPEC+ supply cuts, driven by increases in Nigeria, Saudi Arabia, and Kuwait.

Meanwhile, the International Energy Agency said in its latest monthly oil market report that while the Israel-Hamas war had not yet directly impacted physical supply, oil markets would "remain on tenterhooks" as the crisis unfolds.

"The Middle East conflict is fraught with uncertainty, and events are fast developing," the IEA said in its report.

"Against a backdrop of tightly balanced oil markets anticipated by the IEA for some time, the international community will remain laser-focused on risks to the region's oil flows," the energy agency added.

Noting a "sharp escalation in geopolitical risk," the IEA said it would continue closely monitoring oil markets and "stands ready to act if necessary to ensure markets remain adequately supplied."



Saudi Arabia Allows Contracting Exceptions for Firms without Regional HQ

The King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
The King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
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Saudi Arabia Allows Contracting Exceptions for Firms without Regional HQ

The King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
The King Abdullah Financial District in Riyadh (Asharq Al-Awsat)

Saudi Arabia has introduced greater flexibility into its investment environment, allowing government entities, under strict controls to safeguard spending efficiency and ensure the delivery of critical projects, to seek exceptions to contract with international companies that do not have regional headquarters in the kingdom.

The Local Content and Government Procurement Authority notified all government bodies of the mechanism to apply for exemptions through the Etimad digital platform.

The step is designed to balance enforcement of the “regional headquarters relocation” decision, in force since early 2024, with the needs of technically specialized projects or those driven by intense price competition.

Under a government decision that took effect at the start of 2024, state entities, including authorities, institutions and government-affiliated funds, are barred from contracting with any foreign commercial company whose regional headquarters in the region is located outside Saudi Arabia.

According to the information, the Local Content and Government Procurement Authority informed all entities of the rules governing contracts with companies that lack a regional headquarters in the kingdom and related parties.

Government entities may request an exemption from the committee for specific projects, multiple projects or a defined time period, provided the application is submitted before launching a tender or initiating direct contracting procedures.

Submission mechanism

In two circulars, the authority detailed how to submit exemption requests and clarified the cases in which contracting is permitted under the controls. It said the exemption service was launched on the Etimad platform in November 2025.

The service is available to entities that float tenders through Etimad. Requests for tenders launched before the service went live, as well as those issued outside the platform, will continue to follow the previously adopted process.

Etimad is the kingdom’s official financial services portal run by the Ministry of Finance, aimed at driving digital transformation of government procedures and boosting transparency and efficiency in managing budgets, contracts, payments, tenders and procurement. The platform streamlines transactions between state entities and the private sector.

Technical criteria

When issuing the contracting controls, the government made clear that companies without a regional headquarters in Saudi Arabia, or related parties, are not barred from bidding for public tenders.

However, their offers can only be accepted in two cases: if there is no more than one technically compliant bid, or if the offer ranks among the best technically and is at least 25% lower in price than the second-best bid after overall evaluation.

Contracts with an estimated value of no more than 1 million riyals ($266,000) are also exempt. The minister may, in the public interest, amend the threshold, cancel the exemption or suspend it temporarily.

More than 700 headquarters

More than 700 multinational companies had relocated their regional headquarters to Riyadh by early 2026, exceeding the initial target of attracting 500 companies by 2030. The program seeks to cement the kingdom’s position as a regional business hub and to localize global expertise.

When announcing the contracting ban, Saudi Arabia said the move was intended to incentivize foreign firms dealing with the government and its affiliated entities to adjust their operations.

It aims to create jobs, curb economic leakage, raise spending efficiency and ensure that key goods and services procured by government entities are delivered inside the kingdom with appropriate local content.

The government said the policy aligns with the objectives of the Riyadh 2030 strategy unveiled during the recent Future Investment Initiative forum, where 24 multinational companies announced plans to move their regional headquarters to the Saudi capital.

It stressed that the decision does not affect any investor’s ability to enter the Saudi economy or continue working with the private sector.

 


IMF Board to Review Staff-level $8.1 Bln Agreement for Ukraine

The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko
The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko
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IMF Board to Review Staff-level $8.1 Bln Agreement for Ukraine

The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko
The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko

The International Monetary Fund on Thursday said its board ​would review a staff-level agreement for a new $8.1 billion lending program for Ukraine in coming days.

IMF spokeswoman Jule Kozack told reporters that Ukrainian authorities had completed the prior actions needed to move forward with the request ⁠of a new ⁠IMF program, including submission of a draft law on the labor code and adoption of a budget.

She said Ukraine's economic growth in 2025 ⁠was likely under 2%. After four years of war, the country's economy had settled into a slower growth path with larger fiscal and current account balances, she said, noting that the IMF continues to monitor the situation closely.

"Russia's invasion continues to take a ⁠heavy ⁠toll on Ukraine's people and its economy," Kozack said. Intensified aerial attacks by Russia had damaged critical energy and logistics infrastructure, causing disruptions to economic activity, Reuters quoted her as saying.

As of January, she said, 5 million Ukrainian refugees remained in Europe and 3.7 million Ukrainians were displaced inside the country.


US Stocks Fall as Iran Angst Lifts Oil Prices

A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
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US Stocks Fall as Iran Angst Lifts Oil Prices

A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid

Wall Street stocks retreated early Thursday as worries over US-Iran tensions lifted oil prices while markets digested mixed results from Walmart.

US oil futures rose to a six-month high as Iran's atomic energy chief Mohammad Eslami said no country can deprive the Islamic republic of its right to nuclear enrichment, after US President Donald Trump again hinted at military action following talks in Geneva.

"We'd call this an undercurrent of concern that is bubbling up in oil prices," Briefing.com analyst Patrick O'Hare said of the "geopolitical angst."

About 10 minutes into trading, the Dow Jones Industrial Average was down 0.6 percent at 49,379.46, AFP reported.

The broad-based S&P 500 fell 0.5 percent to 6,849.35, while the tech-rich Nasdaq Composite Index declined 0.6 percent to 22,621.38.

Among individual companies, Walmart rose 1.7 percent after reporting solid results but offering forecasts that missed analyst expectations.

Shares of the retail giant initially fell, but pushed higher after Walmart executives talked up artificial intelligence investments on a conference call with analysts.

The US trade deficit in goods expanded to a new record in 2025, government data showed, despite sweeping tariffs that Trump imposed during his first year back in the White House.