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Saudi Energy Minister: OPEC+ Now Key Stabilizer of Oil Prices

Saudi Energy Minister Prince Abdulaziz Speaks at St. Petersburg Economic Forum – (X)
Saudi Energy Minister Prince Abdulaziz Speaks at St. Petersburg Economic Forum – (X)
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Saudi Energy Minister: OPEC+ Now Key Stabilizer of Oil Prices

Saudi Energy Minister Prince Abdulaziz Speaks at St. Petersburg Economic Forum – (X)
Saudi Energy Minister Prince Abdulaziz Speaks at St. Petersburg Economic Forum – (X)

Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday that the OPEC+ alliance has become a key stabilizing force for oil prices and the broader energy market, describing the group as a reliable and adaptive coalition that responds only to market realities.

 

Speaking at the annual St. Petersburg International Economic Forum in Russia, Prince Abdulaziz stressed that OPEC+ is flexible and reacts only to facts, not speculation.

 

“We are a credible alliance that adapts as circumstances evolve,” he told a session that also featured Russian Deputy Prime Minister Alexander Novak.

 

The minister’s remarks came on the opening day of the forum, which began with a welcome address by Russian President Vladimir Putin.

 

Putin emphasized Russia’s commitment to “sovereign development and respect for cultural and civilizational identity,” particularly within partnerships such as BRICS. He said Moscow remains committed to building a “fair and mutually beneficial international system of cooperation free from discrimination, coercion and sanctions pressure.”

 

During the joint session, Prince Abdulaziz said: “As you know, we are not the only two countries managing OPEC+. The alliance consists of 22 countries, including a core group of eight. It is our duty to maintain communication with all members and ensure joint decisions are made in response to market developments.”

 

He warned against unilateral declarations on behalf of the group, saying: “No one has the right to speak on behalf of the alliance without knowing the collective stance.”

 

Since its formation, OPEC+ has resolved “many challenges,” he added.

 

The eight core members of the OPEC+ alliance are Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman. These countries are scheduled to meet on July 6 to decide whether to begin increasing production in August.

 

At the end of May, OPEC announced that the eight nations had agreed to boost oil output by 441,000 barrels per day in July, citing improving global economic conditions and strong market fundamentals.

 

When asked whether Saudi Arabia and Russia would step in to offset any potential shortfall in Iranian oil, Prince Abdulaziz said: “We only respond to facts.” He reiterated that OPEC+ remains a reliable and effective alliance, closely monitoring market developments.

 

The minister also highlighted efforts by Riyadh and Moscow to create a favorable investment climate in both countries through various joint projects, noting the importance of fostering such conditions amid current global uncertainties.

 

Novak, for his part, underscored the need for oil market stability. “OPEC+ must implement its plans calmly and avoid creating panic in the market,” he said, cautioning against overreactions at a time when oil prices have surged due to tensions between Iran and Israel.

 

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Business

UAE Shares Extend Losses

A man follows the stock market shares on a screen with stock information at the Dubai Financial Market (DFM) in the Gulf emirate of Dubai, United Arab Emirates, 04 March 2026. EPA/ALI HAIDER
A man follows the stock market shares on a screen with stock information at the Dubai Financial Market (DFM) in the Gulf emirate of Dubai, United Arab Emirates, 04 March 2026. EPA/ALI HAIDER
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UAE Shares Extend Losses

A man follows the stock market shares on a screen with stock information at the Dubai Financial Market (DFM) in the Gulf emirate of Dubai, United Arab Emirates, 04 March 2026. EPA/ALI HAIDER
A man follows the stock market shares on a screen with stock information at the Dubai Financial Market (DFM) in the Gulf emirate of Dubai, United Arab Emirates, 04 March 2026. EPA/ALI HAIDER

The UAE stock markets fell in early trade on Thursday, extending losses from the previous session after exchanges reopened following a two-day trading halt triggered by Iran’s missiles and drones.

The UAE's stock markets reopened on Wednesday.

Both exchanges said they will temporarily set a 5% lower price limit on securities.

Dubai's main share index sank more than 4%, as stocks retreated across the board, with top lender Emirates NBD and blue-chip developer Emaar Properties both losing 4.9%.

Elsewhere, budget airline Air Arabia declined 4.9%.

However, utility firm Dubai Electricity and Water Authority advanced 4.4%.

In Abu Dhabi, the index retreated 2.3%, with the country's biggest lender First Abu Dhabi Bank declining 4.9% and Aldar Properties was ⁠down 5%.

Among ⁠other fallers, Abu Dhabi Commercial Bank tumbled 5%.

Business

US Bonds Tumble as Oil Price Surge Rekindles Inflation Fears

Patrick King works on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)
Patrick King works on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)
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US Bonds Tumble as Oil Price Surge Rekindles Inflation Fears

Patrick King works on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)
Patrick King works on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)

A steep selloff ‌in US Treasuries extended into a fourth straight day on Thursday, as investors fretted that surging energy prices from the war in the Middle East could stoke inflation and derail the Federal Reserve's rate outlook.

The benchmark 10-year US Treasury yield jumped as much as 5 basis points in Asia to a three-week high of 4.1310%, extending its rise for the week thus far to nearly 17 bps.

The two-year yield was meanwhile up about 2 bps to ‌3.5640%, having ‌also gained more than 18 bps ‌this ⁠week. Bond prices move ⁠inversely to yields, said Reuters.

Investors have pared back expectations of further easing from the Fed this year on the back of the US-Israel war with Iran, which entered its sixth day as Iran launched a wave of missiles at Israel, sending millions of residents into bomb shelters.

That has ⁠kept oil prices elevated, and with shipping ‌through the key Strait of ‌Hormuz paralyzed, investor focus has quickly shifted to the risk ‌of a resurgence in inflation.

"As of right now, ‌the (US) consumer price index is going to get back to the high (2%) if crude oil costs don't tumble in short order," said Jose Torres, senior economist at Interactive Brokers.

"The reversal in (inflation) ‌progress would likely send Treasuries and stocks further lower, as rate-cut optimism amid decelerating cost ⁠pressures was ⁠what sparked the rallies in fixed income and cyclical benchmarks early in 2026."

Traders are now pricing in just a 34% chance of a Fed cut in June, as compared to a near 46% chance a week ago, according to the CME FedWatch tool.

Fed funds futures point to just over 40 bps worth of easing by the year-end.

The shifting Fed expectations have also come on the back of Wednesday's upbeat US economic data, which showed services sector activity surged to more than a 3-1/2-year high in February amid strong demand.

Business

Could Egypt’s ‘SUMED’ Pipeline Temporarily Replace the Strait of Hormuz?

Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)
Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)
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Could Egypt’s ‘SUMED’ Pipeline Temporarily Replace the Strait of Hormuz?

Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)
Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)

Amid the ongoing Iran war and Tehran’s announcement of the closure of the Strait of Hormuz, a key artery for global energy supplies, Egypt has begun highlighting the SUMED pipeline linking the Red Sea and the Mediterranean as a potential temporary alternative for oil transport.

The move has raised questions about whether the pipeline, a vital connection between the two seas, could help offset disruptions to the volatile waterway.

Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi addressed the issue during a government press conference on Tuesday, saying Egypt “has sufficient technical and logistical capabilities to support this strategic route.”

He said the SUMED pipeline enhances the flexibility of oil supply flows in the region and confirmed Egypt’s readiness to cooperate with Gulf states to facilitate oil transport from the Red Sea to the Mediterranean through the line.

Energy experts who spoke to Asharq Al-Awsat agreed that the pipeline could help ease the current energy crisis amid the absence of any political solution to end the war, noting the line was originally designed as an alternative route when oil shipments face obstacles passing through the Suez Canal.

SUMED pipeline

The pipeline is owned by the Arab Petroleum Pipelines Company (SUMED), an Arab joint venture led by Egypt, with a 50% stake held by the Egyptian General Petroleum Corporation, alongside partners from Gulf states.

The pipeline runs across Egypt from Ain Sokhna on the Gulf of Suez to Sidi Kerir on the Mediterranean coast, with a capacity of about 2.8 million barrels per day.

According to Egypt’s petroleum ministry, the pipeline transported about 24.9 billion barrels of crude oil and more than 730 million barrels of petroleum products from its launch in 1974 through 2024.

Ahmed Kandil, head of Energy Studies Program at the Al-Ahram Center for Political and Strategic Studies, said the line’s importance lies in easing disruptions to oil trade following Tehran’s declaration that it had closed the Strait of Hormuz.

He told Asharq Al-Awsat that oil shipments could reach the pipeline via tankers transporting crude from Saudi Arabia’s Yanbu port to Egypt’s Ain Sokhna port, from where it would move through the pipeline to the Mediterranean and onward to Europe.

He said coordination with Gulf states is underway to contain concerns over energy supplies, particularly among European consumers.

Kandil added that the arrival of part of Gulf exports to European markets is highly important, helping limit spikes in Brent crude prices, which have already surpassed $80 per barrel.

“The growing importance of the Egyptian pipeline comes amid the absence of a political horizon, which means the current conflict could be prolonged,” he said.

Storage capacity

According to the US Energy Information Administration, the main reason for building the SUMED pipeline at this location is that very large crude carriers — capable of transporting about 2.2 million barrels — cannot pass through the Suez Canal due to their excessive weight and width, which could risk grounding.

Instead, they offload their cargo at Ain Sokhna, where the oil is transported through the pipeline to the other side of Egypt. Smaller vessels then reload the crude at Sidi Kerir and sail to Europe and the United States.

Energy markets expert Ramadan Abu Al-Ala said the Egyptian pipeline serves as an alternative to the Suez Canal and could temporarily ease the crisis caused by the closure of the Strait of Hormuz.

He noted that the pipeline is particularly effective for oil tankers arriving from Saudi Arabia, Oman, Bahrain and the United Arab Emirates, which can unload at Ain Sokhna before the crude is transported to the Mediterranean and European markets.

Abu Al-Ala expects SUMED to become even more important for Gulf oil exports to Europe if the war drags on, increasing reliance on the pipeline. However, he said this would require enhanced security measures for oil tankers operating in the Red Sea.

Energy market experts also highlighted another advantage: the pipeline’s large storage capacity. SUMED operates storage tanks with a total capacity of 40 million barrels of oil.

In February 2019, Saudi Aramco signed two agreements with the company to provide storage capacity for diesel and fuel oil.