Saudi Energy Minister Says OPEC+ Has Done a Lot to Stabilize Global Energy Markets

Saudi Energy Minister Prince Abdulaziz bin Salman. (SPA)
Saudi Energy Minister Prince Abdulaziz bin Salman. (SPA)
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Saudi Energy Minister Says OPEC+ Has Done a Lot to Stabilize Global Energy Markets

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

Saudi Energy Minister Prince Abdulaziz bin Salman said the Organization of Petroleum Exporting Countries (OPEC) and its allies, referred to as OPEC+, have "done a lot" to stabilize global energy markets.

Speaking about energy security at the Abu Dhabi Sustainability Week Summit at Expo 2020 in Dubai, the minister added: "We believe we as OPEC Plus have done a lot in bringing about stability."

The minister made it clear that it is the prerogative of the US government whether to release supply from the strategic petroleum reserves.

Last November, the US administration released 50 million barrels of crude from the US Strategic Petroleum Reserve to help cool oil prices in cooperation with other countries such as China, India, South Korea, Japan, and Britain.

"This is a matter for the American government," the Saudi minister told reporters in Dubai in response to a question about whether the United States could pump more oil from its reserves, given the price hike.

Reuters reported that China would release crude oil from its national strategic stockpiles around the Lunar New Year holidays that start on February 1 as part of a plan coordinated by the US with other major consumers to reduce global prices.

Oil prices rose on Monday, with Brent crude futures at their highest in more than three years, as investors bet supply will remain tight amid restrained output by major producers with global demand unperturbed by the Omicron coronavirus variant.

Brent crude futures gained 42 cents, or 0.5 percent, to $86.48 a barrel. The contract touched its highest since October 2018, $86.71 earlier in the session.

US West, Texas Intermediate crude, was up 62 cents, or 0.7 percent, at $84.44 a barrel, after hitting $84.78, the highest since November 10, 2021, earlier in the session.

The gains followed a rally last week when Brent rose 5.4 percent, and WTI climbed 6.3 percent.

Traders said that frantic oil buying, driven by supply outages and signs the Omicron variant won't be as disruptive as feared for fuel demand, has pushed some crude grades to multi-year highs, suggesting the rally in Brent futures could be sustained a while longer.

OPEC+ are gradually relaxing output cuts implemented when demand collapsed in 2020.

However, many small producers cannot increase supplies, and others are concerned about pumping too much oil in case of renewed COVID-19 setbacks.

On Friday, US officials voiced fears that Russia was preparing to attack Ukraine if diplomacy failed. Russia, which is massing about 100,000 troops on the border with Ukraine, released pictures of its forces' movement.

Two US officials and two energy sources told Reuters on Friday that the US government held talks with several international energy companies about contingency plans to supply natural gas to Europe if the conflict between Russia and Ukraine disrupted Russian supplies.

US crude oil stockpiles fell more than expected to their lowest levels since October 2018, but gasoline inventories surged with weak demand, according to the US Energy Information Administration data.



Egypt Raises Fuel Prices for First Time in 2025

Representation photo: Arley Perez pumps diesel fuel into his truck at a Shell station on April 10, 2025 in Miami, Florida. Joe Raedle/Getty Images/AFP
Representation photo: Arley Perez pumps diesel fuel into his truck at a Shell station on April 10, 2025 in Miami, Florida. Joe Raedle/Getty Images/AFP
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Egypt Raises Fuel Prices for First Time in 2025

Representation photo: Arley Perez pumps diesel fuel into his truck at a Shell station on April 10, 2025 in Miami, Florida. Joe Raedle/Getty Images/AFP
Representation photo: Arley Perez pumps diesel fuel into his truck at a Shell station on April 10, 2025 in Miami, Florida. Joe Raedle/Getty Images/AFP

Egypt hiked prices on fuel products on Friday by up to almost 15%, state media reported, marking the first increase in 2025 as the government seeks to reduce fuel subsidies as required by the International Monetary Fund's (IMF) $8 billion support package.

The increases of between 11.76% and 14.81% on a wide range of fuel products come almost a month after the IMF approved the disbursement of $1.2 billion to Egypt following completion of the fourth review of its loan program signed last year.

Egypt has taken on back-to-back financing facilities with the IMF since 2016, when it agreed a $12 billion loan program to resuscitate its economy after years of political turmoil since the Arab Spring protests began.

Since then, the lender has pushed the government to cut fuel, electricity and food subsidies while expanding social safety nets.

The fund said in March that Egypt was committed to lowering its energy subsidies to reach cost recovery by December as it works to reduce a wide current account deficit, reported Reuters.

Prices for diesel fuel, one of the most commonly used fuels in the country, were raised by 2 Egyptian pounds ($0.0390) to 15.50 pounds per liter from 13.50 pounds.

Gasoline prices increased by as much as 14.5% depending on the grade, with 80 octane gasoline rising to 15.75 pounds, 92 octane to 17.25 pounds and 95 octane to 19 pounds.

Meantime, the prices of the butane cooking gas were hiked to 200 pounds per cylinder from 150 pounds.

Prime Minister Mostafa Madbouly said in March that by the year's end the government will have stopped petroleum subsidies from being a financial strain, but it will continue to subsidize diesel to some degree and will not price it at 100% of its cost.

Egypt still spent about 10 billion Egyptian pounds ($197.71 million) on fuel subsidies each month, despite having raised prices three times in 2024, Petroleum Minister Karim Badawi said in October following the last hike that ranged between 11% and 17%.

Egypt in 2024 witnessed a sharp decline in revenues from its Suez Canal, a main source of foreign currency for the government, as the war in Gaza led Iran-aligned Houthis in Yemen to attack vessels transiting the Red Sea in support of Palestinians.

That, combined with diminishing local natural gas production which Egypt had even begun exporting, has compounded the country's economic woes and left it strapped for dollars.

Egypt needs these dollars to import natural gas, petroleum and wheat for its sprawling food subsidy program that feeds more than 62 million people.

Since early 2022, the foreign currency shortage has curbed local business activity and led to backlogs at ports and delays in payments for commodities, forcing Egypt to request a 46-month expanded loan from the IMF.

The pound has since lost more than two-thirds of its value against the dollar in a series of staggered devaluations, while petrol prices in Egypt remain some of the lowest in the world.