US LNG Exports Set to Rise for First Time in 6 Months

A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. (Reuters)
A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. (Reuters)
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US LNG Exports Set to Rise for First Time in 6 Months

A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. (Reuters)
A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. (Reuters)

US liquefied natural gas (LNG) exports are on track to rise in August for the first month in six, rallying US gas prices by over 15% to a three-month high, according to analysts, energy traders and data from Refinitiv.

So far this year, LNG buyers around the world have canceled more than 100 US cargoes as prices for the fuel collapsed to record lows in Europe and Asia as demand collapsed due to the coronavirus.

Even before the pandemic spread, global gas prices were already trading at their lowest levels in years after a record number of LNG export terminals entered service in 2019, flooding the global market with fuel, at the same time winters in Europe and Asia were warmer than normal, forcing utilities to keep record amounts of gas in storage.

Stockpiles in the United States and Europe are now expected to reach all-time highs at the end of the summer injection season.

The amount of pipeline gas flowing to US LNG plants averaged 4.0 billion cubic feet per day (bcfd) (41% utilization) so far in August, according to Refinitiv, putting LNG exports on track for their first monthly gain since hitting a record high in February. Utilization was about 90% in 2019.

That compares with a 21-month low of 3.3 bcfd in July when buyers canceled the most cargoes in a month and the all-time high of 8.7 bcfd in February.

With LNG exports rising again and forecasts for hot weather expected to blanket much of the United States until late August, keeping air conditioning demand high, US gas prices at the Henry Hub benchmark in Louisiana soared over 15% on Monday to their highest since early May.



Saudi Arabia and Russia: A Strategic Partnership Beyond the Oil Barrel, Shaping Global Economic Stability

Saudi Arabia and Russia: A Strategic Partnership Beyond the Oil Barrel, Shaping Global Economic Stability
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Saudi Arabia and Russia: A Strategic Partnership Beyond the Oil Barrel, Shaping Global Economic Stability

Saudi Arabia and Russia: A Strategic Partnership Beyond the Oil Barrel, Shaping Global Economic Stability

Economic relations between Saudi Arabia and Russia have entered an advanced stage of strategic transformation, moving beyond traditional cooperation in energy markets toward a multidimensional partnership encompassing investment, technology, industry, and space. This development comes amid growing coordination between the two countries, strengthening their influence within the global economic landscape and providing greater stability to energy markets in an increasingly volatile geopolitical environment.

This momentum in bilateral relations coincides with Saudi Arabia’s prominent role as a principal guest of honor at the St. Petersburg International Economic Forum, reflecting the Kingdom’s growing presence at major international economic gatherings and underscoring the level of mutual trust between Riyadh and Moscow. The forum also served as an important platform for signing several agreements and memoranda of understanding that have expanded cooperation in investment, technology, and industry, advancing the partnership toward deeper strategic integration.

According to economists and specialists, the Saudi-Russian partnership has evolved beyond a conventional bilateral relationship into an influential balancing force within the international economic system, particularly through its contribution to energy market stability and support for economic diversification efforts aligned with the goals of Vision 2030, including increasing the contribution of non-oil sectors and localizing knowledge and expertise.

In this context, Saudi Shura Council member Fadl bin Saad Al-Buainain told Asharq Al-Awsat that the Kingdom has reshaped its economic relations in recent years around principles of balance and openness toward major global economic powers. He noted that Russia represents an important partner given its weight in global energy markets, making enhanced cooperation with Moscow a strategic choice that serves the interests of both countries while supporting the stability of international markets.

He added that coordination between Riyadh and Moscow—whether bilaterally or through the OPEC+ alliance—has helped achieve notable balance in oil markets and mitigate sharp fluctuations driven by geopolitical tensions. According to Al-Buainain, this model of cooperation has proven effective not only in the energy sector but also across broader economic and development fields.

He pointed out that the most significant areas of cooperation recently agreed upon during the St. Petersburg Economic Forum include the economy, energy, and food security, in addition to defense industries and technology, as well as important agreements facilitating travel and mobility between the two countries.

Al-Buainain emphasized that mining, technology, and space represent key pillars of bilateral cooperation due to their strategic importance to both sides. He explained that mining is among the Kingdom’s most promising sectors and a priority within its economic diversification plans, making it a natural area for cooperation with Russia. He also highlighted technology cooperation—particularly in artificial intelligence, digital transformation, and space technologies—as a priority under Vision 2030 because of its long-term strategic value.

He stressed the importance of moving from agreements to implementation, noting that serious efforts to activate these understandings would generate tangible economic benefits and provide greater momentum for the partnership in the coming years, thereby strengthening the strategic relationship between the two countries.

High-Quality Bilateral Cooperation

For his part, Dr. Abdulrahman Baashen, head of the Al-Shorouq Center for Economic Studies in Jazan, southern Saudi Arabia, said there is a growing Saudi-Russian drive to elevate bilateral cooperation to its highest possible level. He noted that this would lay the groundwork for a distinctive form of economic and industrial integration and establish a joint framework for addressing geopolitical challenges in the region and Europe, helping preserve economic stability at both the regional and international levels.

Baashen told Asharq Al-Awsat that relations between Riyadh and Moscow have accelerated across multiple sectors as the culmination of agreements signed over previous years, alongside ongoing coordination within OPEC+. He noted that this cooperation has supported global energy market stability amid geopolitical tensions, including the repercussions of the US-Iran conflict, while also expanding into technology, industry, space, and satellite-related fields.

He believes that several Vision 2030 initiatives have found significant opportunities for integration with Russian partnerships. In his view, bilateral cooperation has become a long-term strategic path carrying both political and economic dimensions, helping shape a new reality amid rapidly changing geopolitical conditions while providing greater opportunities for economic diversification and political stability.

Baashen also noted that the Saudi-Russian Joint Governmental Committee has helped launch more than 70 joint projects valued at over $70 billion. He added that the signing of 13 agreements and memoranda of understanding on the sidelines of the St. Petersburg Forum reflects a clear commitment to high-quality bilateral cooperation aimed at diversifying the economy, increasing joint investments, localizing advanced technologies, strengthening both countries’ regional and global presence, and fostering more balanced international relations that support economic and political stability worldwide.

Riyadh and Moscow as Drivers of Economic Stability

Former Chairman of the Federation of Saudi Chambers, Engineer Abdullah Al-Mubty, told Asharq Al-Awsat that Saudi Arabia and Russia maintain “full and continuous coordination to manage market imbalances through joint decisions to increase or reduce production, ensuring fair prices that serve both producers and consumers.” He explained that the importance of this cooperation stems from the fact that the two countries rank among the world’s largest oil producers and exporters. He added that Vision 2030’s objectives of economic diversification, attracting investment, and localizing technology make Russia a vital partner in Saudi Arabia’s pursuit of balanced international relations.

Al-Mubty argued that this Saudi-Russian alignment has created a safety net that prevents oil prices from either collapsing or soaring uncontrollably. The presence of both countries, he said, helps maintain global economic balance, ensures secure energy supplies, and supports the uninterrupted flow of oil to meet international demand. Beyond energy coordination, he noted, the two countries have also moved toward broader economic agreements aimed at promoting global stability.

Mining, Technology, and Space

Al-Mubty said that mining, technology, and space have become the principal pillars shaping the future of Saudi-Russian cooperation. Both countries are actively working to implement joint investment agreements that support economic diversification while advancing knowledge-transfer initiatives and enhancing the resilience of supply chains between them.

Regarding the mining sector, he highlighted the significant opportunities available to Saudi Arabia through Russian expertise, particularly in exploration activities. Russia’s long-standing leadership in geological surveying, he explained, can contribute substantially to assessing the Kingdom’s mineral resources and expanding joint investment opportunities in rare minerals. He also noted that Saudi Arabia’s major investment opportunities have become a strong attraction for leading Russian mining companies.

In the technology sector, recent developments have opened promising avenues for cooperation focused primarily on integrating artificial intelligence and digital transformation applications to improve operational efficiency and competitiveness in Saudi industry and mining. In this regard, Al-Mubty stressed the strategic importance of the partnership between the Public Investment Fund and the Russian Direct Investment Fund, manifested through dedicated investment vehicles aimed at financing and localizing advanced technologies.

He also highlighted the longstanding cooperation in the space sector, noting that agreements related to space exploration have paved the way for a new phase of joint work. This cooperation now extends to ongoing coordination with the Russian space agency Roscosmos in training Saudi personnel for space missions and collaborating on satellite navigation systems.

Investment and Trade

Al-Mubty stated that current trade exchange between Riyadh and Moscow stands at approximately $4 billion. He also expects Saudi Arabia to attract around $1.5 billion in direct Russian investment over the coming years. According to him, both countries are clearly committed to expanding these figures through new joint ventures, while the Saudi-Russian Business Council has set a strategic target of increasing bilateral trade to $12 billion in the years ahead.

He concluded that close cooperation between Riyadh and Moscow has become an indispensable pillar of global economic and energy-market stability by helping maintain a delicate balance between supply and demand. Expanding this partnership, he added, directly contributes to strengthening food security and diversifying investments in key sectors such as technology and agriculture, reducing the impact of geopolitical volatility on economic growth in both countries. He emphasized that the partnership’s greatest significance lies in three core areas: stabilizing energy markets, strengthening food security, and expanding non-oil investments.

A Deeply Rooted Partnership

Saudi economist Dr. Ibrahim Al-Omar, supervisor of the consultancy firm Sharah Studies, told Asharq Al-Awsat: “The partnership between Riyadh and Moscow extends beyond oil toward global economic stability. Saudi-Russian relations are no longer tied solely to the oil barrel, even though oil remains their backbone.”

Al-Omar elaborated on the operational dimensions of the partnership, saying: “As the two pillars of OPEC+, Saudi Arabia and Russia have led the coalition’s decisions to raise production ceilings by roughly three million barrels per day during 2025—equivalent to nearly 3 percent of global demand—through carefully phased increases that can be paused or reversed whenever market stability requires.”

Discussing recent crises, he added: “When the US-Iran conflict intensified and disruptions affected supplies through the Strait of Hormuz last May, most of the agreed production increase came from Saudi Arabia and Russia. This was the clearest demonstration that coordination between the two major producers acts as a safety valve that restrains volatility, eases inflationary pressures, and protects energy-dependent economies from geopolitical shocks.”

According to Al-Omar, the center of gravity in the relationship is increasingly shifting from traditional trade toward manufacturing and knowledge transfer. While energy in all its forms—conventional, renewable, and nuclear—remains at the forefront, greater emphasis is now being placed on industry, mining, the digital economy, artificial intelligence, and space sciences.

He said: “I saw this clearly during the Saudi Minister of Industry and Mineral Resources’ visit to Russia, where mining exploration opportunities covering 50,000 square kilometers across the Nuqrah, Suhaibrah, and Al-Duwaihi belts were presented. Discussions also included launching a joint technology platform worth $1 billion and expanding space cooperation that leverages Russia’s extensive experience in the field.”

Reviewing the broader indicators, Al-Omar said: “These developments are the product of a well-established institutional framework managed efficiently by the Joint Governmental Committee, which held its ninth session in Riyadh last December. The figures speak for themselves: more than 70 joint projects worth over $70 billion, alongside non-oil trade that surged from SAR 1.84 billion ($490.6 million) in 2016 to SAR 12.5 billion (around $3.3 billion) in 2024. In addition, 13 new agreements and memoranda of understanding were signed during the latest St. Petersburg Forum, where Saudi Arabia participated as the guest of honor.”

Al-Omar concluded that strengthening strategic cooperation between Riyadh and Moscow is no longer merely a bilateral matter. Instead, it has become a genuine and decisive balancing factor within an increasingly turbulent international system. It supports the goals of Vision 2030 by diversifying sources of income, localizing knowledge, and increasing the contribution of the non-oil sector, thereby fostering economic stability that extends beyond the two countries to the wider region and the global economy.


Saudi Arabia Ranks 3rd Globally in Creation of Firms

The Saudi flag (SPA)
The Saudi flag (SPA)
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Saudi Arabia Ranks 3rd Globally in Creation of Firms

The Saudi flag (SPA)
The Saudi flag (SPA)

Saudi Arabia ranked third globally in the "Creation of Firms" indicator in the IMD World Competitiveness Yearbook 2026, due to streamlined procedures and accelerated business startup processes through reduced requirements and automated procedures.

Saudi Arabia advanced to fourth place in the "Equal Opportunity" indicator by enabling individuals and establishments to practice economic activity and access facilities and enablers fairly and effectively.

In the "Large Corporations" indicator, the Kingdom advanced to seventh place globally, reflecting the ability of large companies to operate with high efficiency and productivity and compete with major global firms, SPA reported.

The Ministry of Commerce stated that efforts to develop the legislative and procedural ecosystem to empower the business sector, in partnership with the public and private sectors, contributed to continued progress across several trade indicators in the report.

Saudi Arabia ranked 13th globally in the IMD World Competitiveness Yearbook and third among G20 countries, achieving progress across all the report's main pillars measuring economic performance, government efficiency, business efficiency, and infrastructure.


Hormuz Reopening to Release Wave of Oil Supply, Depress Prices

Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, June 17, 2026. Amirhosein Khorgooi/ISNA/via WANA (West Asia News Agency)/Handout via REUTERS
Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, June 17, 2026. Amirhosein Khorgooi/ISNA/via WANA (West Asia News Agency)/Handout via REUTERS
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Hormuz Reopening to Release Wave of Oil Supply, Depress Prices

Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, June 17, 2026. Amirhosein Khorgooi/ISNA/via WANA (West Asia News Agency)/Handout via REUTERS
Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, June 17, 2026. Amirhosein Khorgooi/ISNA/via WANA (West Asia News Agency)/Handout via REUTERS

Middle Eastern crude oil markets could come under further pressure if the Strait of Hormuz reopens on Friday following the US-Iran interim deal, releasing millions of barrels of oil stranded in the Middle East Gulf into global markets, industry executives said.

The wave of supply comes after Gulf producers ramped up exports via ship-to-ship transfers off the United Arab Emirates and Oman this month, which depressed spot differentials for Middle East crude to discounts on Tuesday.

Kpler analyst Muyu Xu said in a June 17 note that the reopening of the Hormuz Strait could unleash some 93 million barrels of stranded non-Iranian barrels from the Arabian Gulf, while producers are expected to continue supplying cargoes through less visible channels.

Some traders estimated that about 50 million barrels are set to be released as some cargoes had already been shipped out. In addition, the lifting of US restrictions on Iranian crude could also release some 72 million barrels stranded on tankers west of Chabahar, with volumes set to rise further if Washington grants broader sanctions relief, ‌Kpler said.

Iran's fleet has ‌been gearing up to boost exports with three of its tankers this week exiting the ‌strait, ⁠which carried about ⁠a fifth of the world's oil and liquefied natural gas shipments before the US and Israel attacked Iran on February 28.

US President Donald Trump and Iranian President Masoud Pezeshkian digitally signed the 14-point agreement to end the war on Wednesday, US and Iran officials said. Iran's foreign ministry said the agreement was already in effect.

ASIAN BUYERS COMMITTED TO SUPPLY ARRIVING JUNE TO AUGUST

While supply is set to surge, most Asian refiners have already booked crude cargoes to arrive in June to August and several refineries in China are scheduled to shut for maintenance, refining and trade sources said, reducing demand for immediate supplies.

Consultancy Energy Aspects tracked more than 1.8 million bpd of Chinese refining capacity that will be shut for turnarounds in July, including ⁠nearly 1.2 million bpd at private firms.

China's throughput, already at a near four-year low in ‌May, is expected to slide further to about 12.4 million bpd this month, before recovering ‌above 13 million bpd in July with state-owned refiners raising runs, it added.

Many Chinese refiners paused spot buying this week as they eyed the reopening ‌of the strait and details of the agreement.

Although weaker crude prices improved refinery economics and narrowed losses, fuel demand in China ‌is expected to stay subdued as a result of the country's rapid adoption of electric vehicles.

"A large-scale increase in crude buying appears unlikely unless Beijing relaxes restrictions on product exports and/or proceeds with another round of strategic petroleum reserves replenishment," said Kpler's Xu.

Some Middle Eastern crude suppliers offered cargoes to independent refiners in eastern Shandong province, two sources said, but at prices higher than sanctioned oil from Iran and Russia.

Crude sellers will need to cut prices further to attract ‌demand once the strait opens, given that some of them, including TotalEnergies, still have unsold cargoes, said one Singapore-based trader. The sources declined to be named as they were not authorized to speak ⁠to the media.

"Refiners are expecting profitability ⁠to be quite poor in the second half of the year," a South Korean industry official said.

"So rather than it being a matter of securing a specific crude, this is becoming a fight over economics," he added.

ASIA OIL DEMAND SHIFTING BACK TO MIDEAST

Still, refiners are preparing for the eventual rise in Middle Eastern supply, which is expected to cool Asia's demand for oil from the Americas. Taiwanese state refiner CPC said it was ready to import heavier grades with a higher sulphur content, to produce more bitumen and sulphur to meet domestic demand if the strait reopens. Some Middle Eastern oil producers have asked Indian refiners to consider buying the committed supplies under their term deals, which would reduce their purchase of oil via spot tenders, sources at three refiners said.

Kpler expects a gradual recovery in Indian demand for Gulf oil to potentially support an additional 400,000 bpd to 600,000 bpd of Middle Eastern imports through August as refiners rebalance their crude slate.

"Increased supply of Middle Eastern crude oil would deepen contango in regional oil benchmarks," an Asian trader said.

Benchmark Dubai's premium to swaps returned to positive territory on Wednesday after slipping into a discount of 46 cents on Tuesday, Reuters' data showed.

In a contango market, prompt prices are lower than those in future months indicating comfortable supplies.