Saudi Arabia Stresses Need to Preserve OPEC+ Achievements

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 13 countries, Asharq Al-Awsat
The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 13 countries, Asharq Al-Awsat
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Saudi Arabia Stresses Need to Preserve OPEC+ Achievements

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 13 countries, Asharq Al-Awsat
The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 13 countries, Asharq Al-Awsat

Saudi Energy Minister Prince Abdulaziz bin Salman on Sunday voiced neutrality towards the OPEC+ meeting scheduled for July 5 but reaffirmed that the Kingdom’s leadership and major sacrifices in making voluntary oil production cuts had helped market recovery.

“I’ve been attending OPEC+ meetings for 34 years and have never seen such a demand; I am neither optimistic nor pessimistic about the upcoming OPEC + meeting,” Prince Abdulaziz told Al Arabiya.

“The extension of the OPEC+ agreement is the basis,” he noted, adding that increasing production was the secondary issue.

Recognizing that uncertainty still plagues the global oil market, Prince Abdulaziz reaffirmed the need to secure long-term messaging by oil producers to the market.

He asserted that Saudi Arabia, as the leader of OPEC+, continues to show balance and concern for the interests of everyone else.

“I represent a balanced country that considers the interests of all in its role as president of OPEC+,” said Prince Abdulaziz.

He said that no country could take its production level in one month as a reference, stressing that there is a mechanism for grievances in OPEC +, but selectivity is difficult.

Prince Abdulaziz added that “a bit of rationality and a bit of compromise saves OPEC+.”

“We have made fantastic achievements in 14 months, and it is shameful for us not to maintain them,” he added.

“If any country has reservations, why keep silent about them previously? Agreement exists between (OPEC+) countries, except for one country,” he noted.

While OPEC+ countries broadly agree to add 400,000 BPD monthly until the end of 2021, the UAE did not agree due to the base point of reference for production quotas.



Gold Hastens Retreat as Dollar Rallies on Trump Victory

FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
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Gold Hastens Retreat as Dollar Rallies on Trump Victory

FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa

Gold prices slid more than 3% to a three-week low on Wednesday as investors piled into the US dollar after Republican Donald Trump was elected US president.

Market participants were also looking ahead to the Federal Reserve's interest rate decision on Thursday for further clues on the bank's easing cycle that had helped gold's stunning rally to successive record highs this year.

Spot gold slipped 2.9% to $2,662.99 per ounce, as of 10:10 a.m. ET (1510 GMT), after hitting a three-week low of $2,652.19. The metal was on track to post its biggest daily loss in five months, Reuters reported.

US gold futures shed 3% to $2,668.2.

"A clear presidential victory when the market has been pricing in a contested result, removal of an element of risk, Trump-trades include the dollar's strengthening this morning and the combination of the two has brought gold lower," said StoneX analyst Rhona O'Connell.

Donald Trump recaptured the White House by securing more than the 270 Electoral College votes needed to win the presidency, Edison Research projected.

Investors believe Trump's presidency will bolster the dollar, causing the Federal Reserve pause in its easing cycle if inflation takes off after expected new tariffs.

The dollar index hit a four-month high, making bullion more expensive for overseas buyers.

"Gold will be torn between the risk of rising inflation, potentially slowing the pace of US rate cuts, as tariffs are rolled out," said Ole Hansen, head of commodity strategy at Saxo Bank.

"The FOMC will likely still cut on Thursday but the subsequent language will be studied closely for signs of a pause."

Investors widely expect the Fed to announce a quarter-point rate cut after 50 bps reduction in September.

Commodities from oil and gas to metals and grains dropped as the dollar rallied.

Spot silver fell 4.9% to $31.03 per ounce. Platinum shed 2.8% to $971.7 and palladium was down 3.7% to $1,035.5. All three metals hit their lowest levels in three-weeks.