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Saudi Arabia Raises Monthly Oil Production to Highest Level in 5 Years

Saudi Arabia raises monthly oil production to highest level in five years. (Reuters)
Saudi Arabia raises monthly oil production to highest level in five years. (Reuters)
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Saudi Arabia Raises Monthly Oil Production to Highest Level in 5 Years

Saudi Arabia raises monthly oil production to highest level in five years. (Reuters)
Saudi Arabia raises monthly oil production to highest level in five years. (Reuters)

It appears that Saudi Arabia responded to the world demand for its oil, as it began boosting output by 330,000 barrels a day in June to 10.3 million barrel per day, according to a Bloomberg News survey of analysts, oil companies and ship-tracking data.

That’s the biggest monthly jump in production since July 2013.

Based on Bloomberg’s preliminary calculations from vessel-tracking and ship-fixture data, Saudi Arabia is pushing more barrels onto world markets with shipments climbed to a 15-month high of 7.47 million bpd last month, compared with 7.15 million bpd in May.

Saudi Arabia's exports to India, Egypt and Singapore rose in June, while exports to China, Japan, South Korea and the United States dropped, the data showed. Official Saudi oil prices in May and June were high for many Asian customers.

Last week, Bloomberg quoted sources as saying that Saudi Arabia aims to raise its oil production in July to a historic level of 10.8 million bpd, as the Kingdom seeks to calm the fears of customers about rising oil prices and any potential shortage of supplies.

This is the highest level recorded so far, higher than the previous level of 10.72 million bpd recorded in November 2016.

It seems clear that Riyadh was preparing to raise production earlier this month, as explained by Saudi Energy Minister Khalid al-Falih, in his remarks in Vienna last month, saying that Aramco has been instructed to equip to raise production.

Reuters figures are much higher than Bloomberg’s figures, as it said Saudi production in June reached 10.7 million bpd, up from 10 million bpd in May.

Production from the Organization of the Petroleum Exporting Countries (OPEC) increased by 320,000 bpd in June, according to a Reuters survey published Monday.

At a meeting on June 23, OPEC agreed to increase supplies to 100 percent by returning to the commitment level of production cuts in force since January 2017, after months of substandard production from countries, including Venezuela and Angola.

Saudi Arabia said the measure would translate into an increase in production by about 1 million bpd.

The Reuters survey also indicated that the 12 OPEC members with supply reduction targets increased output by 680,000 bpd compared to May.

Russian average monthly oil output exceeded 11 million bpd in June for the first time since April 2017 as leading global oil producers started to ease output curbs, energy ministry data showed on Monday.

Production rose to 11.06 million bpd in June from 10.97 million bpd in May, up around 100,000 bpd. In tons, Russian oil output was 45.276 million versus 46.377 million in May.

OPEC and some other leading global oil producers led by Russia agreed last month to return to 100 percent compliance with previously agreed oil output cuts, after months of underproduction by some OPEC countries.

Russia has pledged to restore output by 200,000 bpd in the second half of the year.

Russia's largest oil producer Rosneft led the output increase, ratcheting up extraction by 1.6 percent last month to 3.89 million bpd, the data showed. The energy ministry's data does not include some of Rosneft's joint ventures.

Saudi Arabia also boosted supply to 10.70 million bpd in June, close to a record high.

Russia's natural gas production was at 53.57 billion cubic meters (bcm) last month, or 1.79 bcm a day, versus 58.12 bcm in May.

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Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.