OPEC+ Extends Deep Oil Production Cuts into 2025

OPEC+ members are currently cutting output by a total of 5.86 million barrels per day (bpd) (Reuters)
OPEC+ members are currently cutting output by a total of 5.86 million barrels per day (bpd) (Reuters)
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OPEC+ Extends Deep Oil Production Cuts into 2025

OPEC+ members are currently cutting output by a total of 5.86 million barrels per day (bpd) (Reuters)
OPEC+ members are currently cutting output by a total of 5.86 million barrels per day (bpd) (Reuters)

OPEC+ agreed on Sunday to extend most of its deep oil output cuts well into 2025, exceeding market expectations, as the group seeks to shore up the market amid tepid demand growth, high interest rates and rising rival US production.

Oil prices trade near $80 per barrel, below what many OPEC+ members need to balance their budget. Worries over slow demand growth in top oil importer China have weighed on prices alongside rising oil stocks in developed economies.

The Organization of the Petroleum Exporting Countries and allies led by Russia, together known as OPEC+, have made a series of deep output cuts since late 2022.

OPEC+ members are currently cutting output by a total of 5.86 million barrels per day (bpd), or about 5.7% of global demand, Reuters reported.

Those include 3.66 million bpd of cuts, which were due to expire at the end of 2024, and voluntary cuts by eight members of 2.2 million bpd, expiring at the end of June 2024.

On Sunday, OPEC+ agreed to extend the cuts of 3.66 million bpd by a year until the end of 2025 and prolong the cuts of 2.2 million bpd by three months until the end of September 2024.

OPEC will spend one year on gradually phasing out cuts of 2.2 million bpd starting from October 2024 until the end of September 2025, three OPEC+ sources said.

"Now the market has clarity for almost 1.5 years," an OPEC+ delegate said, declining to be named.

Amrita Sen, co-founder of Energy Aspects think tank, said: "The deal should allay market fears of OPEC+ adding back barrels at a time when demand concerns are still rife".

 

 

 

 

 

 



Saudi Entertainment Becomes Strategic Driver of Economy

 Large crowds attend Riyadh Season, SPA
Large crowds attend Riyadh Season, SPA
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Saudi Entertainment Becomes Strategic Driver of Economy

 Large crowds attend Riyadh Season, SPA
Large crowds attend Riyadh Season, SPA

Over the past decade, Saudi Arabia’s entertainment sector has shifted from an activity with limited influence to one of the main drivers of economic diversification under Vision 2030.

After years in which the sector was viewed as marginal or seasonal, it has become an integrated industry covering major events and festivals, concerts and international shows, cinema and artistic production, gaming and esports, entertainment tourism, and the restaurant and retail sectors linked to events.

The transformation has been reflected economically through the attraction of billions of riyals in local and international investment, the creation of thousands of jobs for young people, and higher domestic spending that might otherwise have flowed abroad. It has also stimulated related sectors such as hospitality, aviation, and transport.

Since its establishment in 2016, the General Entertainment Authority has played a central role in building and accumulating the sector’s regulatory infrastructure and attracting international events, turning cities such as Riyadh and Jeddah into regional hubs for events and entertainment.

As a result, entertainment is no longer merely a consumer activity. It has become an economic, investment, and cultural tool that contributes to improving the quality of life and strengthening Saudi Arabia’s position as a regional and global destination.

320 million visitors

General Entertainment Authority Chairman Turki Alalshikh said that over 10 years of continuous work, Saudi Arabia’s entertainment ecosystem had developed through more than 39 seasons and 21 entertainment programs, offering diverse experiences and drawing more than 320 million visitors.

He said this had helped consolidate the country’s global presence in the sector.

Alalshikh thanked Custodian of the Two Holy Mosques King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman for their “unlimited” support in establishing the General Entertainment Authority and building an integrated entertainment sector in the kingdom.

The chairman of the General Entertainment Authority had previously disclosed that the estimated brand value of Riyadh Season had reached $3.2 billion, reflecting the major growth in the season’s global reputation and confirming that it had become one of the leading entertainment brands in the Middle East and the world.

During the previous edition of Riyadh Season, he said the event included 11 main entertainment zones across the capital, 15 international championships, and 34 exhibitions and festivals, with the participation of more than 2,100 companies across various fields.

Local companies accounted for 95% of the total, through 4,200 contracts signed with the private sector, reflecting the empowerment of national talent and the growing contribution of the private sector to the local economy.

Tourism economy

In this context, the World Travel and Tourism Council, WTTC, recently said Saudi Arabia’s tourism sector was the largest in the Middle East.

It said the total contribution of travel and tourism to the kingdom’s economy reached about $178 billion in 2025, accounting for 46% of the Middle East’s tourism economy, according to the council’s methodology, which includes the sector’s direct and indirect contribution to gross domestic product.

The economic impact report said the total contribution of travel and tourism to Saudi Arabia’s GDP grew by about 7.4% in 2025, nearly double the global average growth rate of 4.1%.

At the regional level, Saudi Arabia exceeded the Middle East average growth rate of 5.3%, reinforcing its position as the fastest-growing tourism market in the region.

The figures underscore Saudi Arabia's regional leadership in tourism and its rapid growth since the start of the comprehensive transformation path outlined by Vision 2030.

The report pointed to business travel as one of the key enablers of growth in Saudi tourism, noting the kingdom’s emergence as a central hub for conferences, exhibitions and major international events. This strengthens its position as a leading global tourism destination with diverse demand drivers.

The WTTC report confirms the continued growth of Saudi Arabia’s tourism sector, a trend reflected in various global and local reports.

Saudi Arabia recently issued the Vision 2030 annual report for 2025, which showed strong performance in the tourism sector last year. The total number of domestic and inbound tourists reached about 123 million, further strengthening the kingdom’s position as a leading global tourism destination.


IMF Warns of 'Inevitable' AI-powered Threats to Global Financial System

FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier/File Photo
FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier/File Photo
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IMF Warns of 'Inevitable' AI-powered Threats to Global Financial System

FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier/File Photo
FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier/File Photo

The International Monetary Fund (IMF) warned on Thursday of the risks to global financial stability posed by cyberattacks powered by advanced artificial intelligence tools, calling for greater international cooperation on the issue.

"IMF analysis suggests that extreme cyber-incident losses could trigger funding strains, raise solvency concerns, and disrupt broader markets," the lender warned in a new report.

According to AFP, the study's authors highlighted the risks posed by the highly interconnected nature of the global financial system, with advanced AI models able to "dramatically reduce" the time and cost of exploiting vulnerabilities.

The warning comes weeks after AI company Anthropic cautioned that its yet-to-be-released "Mythos" model was incredibly adept at finding and exploiting such weaknesses.

The model was particularly efficient at identifying vulnerabilities that developers and users had been previously unaware of.

In the hands of hackers, such so-called "zero-day" vulnerabilities are considered particularly dangerous.

On Wednesday, White House economic adviser Kevin Hassett told Fox News that an "all-government" and private sector effort was being made to test the model and ensure it does not cause harm to US businesses or government.

A day earlier, the US government announced a policy shift in which it would have access to tech giants' new AI models to evaluate them before they are released.

The IMF warned that emerging and developing countries, "which often have more severe resource constraints, may be disproportionately exposed to attackers targeting regions with weaker defenses."

The risks, the authors said, were systemic, cut across sectors and came with the threat of contagion, with the reliance on a small number of platforms and cloud providers likely to increase "the impact of any single exploited weakness."

"Defenses will inevitably be breached, so resilience must also be a priority, specifically to limit how far incidents spread and ensure rapid recovery," the report said.

IMF chief Kristalina Georgieva warned last month that the global financial system was not ready for the cybersecurity threats posed by AI.

"We are very keen to see more attention to the guardrails that are necessary to protect financial stability in a world of AI," she told CBS News, seeking global collaboration on the issue.


Saudi PIF Sets Three-part Dollar Bond Spreads as Demand Tops $21.6 Bln

The Saudi capital, Riyadh. SPA
The Saudi capital, Riyadh. SPA
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Saudi PIF Sets Three-part Dollar Bond Spreads as Demand Tops $21.6 Bln

The Saudi capital, Riyadh. SPA
The Saudi capital, Riyadh. SPA

Saudi Arabia's Public Investment Fund set spreads for a three-part benchmark dollar bond on Thursday after drawing more than $21.6 billion in combined demand.

The PIF tightened pricing on the three-year tranche to 95 basis points over US Treasuries from initial guidance of around 130 bps, the seven-year tranche to 105 bps from 135 ⁠bps and the 30-year ⁠tranche to 135 bps from 170 bps, fixed income news service IFR said.

Order books stood at more than $7.6 billion for the three-year notes, over $6.8 billion for the seven-year tranche and above $7.2 billion for the 30-year bonds, IFR said.

Citi, Goldman Sachs International, HSBC and J.P. Morgan ⁠are acting as joint global coordinators.

The PIF last tapped debt markets in January, raising $2 billion from a 10-year Islamic bond sale.

The fund is central to Saudi Arabia's Vision 2030 program to diversify the economy away from oil.