President Trump is visiting Saudi Arabia as we speak, the important thing OPEC+ participant, which has ramped up manufacturing to self-discipline non-compliant members by pressuring oil costs, Ole R. Hvalbye, a commodities analyst at Skandinaviska Enskilda Banken AB (SEB), acknowledged in a SEB report despatched to Rigzone on Tuesday.
“This aligns nicely with U.S. pursuits, particularly with the administration pushing for decrease crude and refined product costs for its U.S. home voters,” Hvalbye famous within the report.
“With Brent hovering round $65, it’s unlikely that oil costs will dominate the agenda in the course of the Saudi go to. As a substitute, discussions are anticipated to deal with broader geopolitical points within the Center East,” he added.
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Trying forward within the report, Hvalbye mentioned OPEC+ is anticipated to proceed with its month-to-month conferences and market assessments.
“The group seems centered on navigating inside disputes and responding to shifts in international demand,” he acknowledged.
“Importantly, the current enhance in output doesn’t counsel an oversupplied market right here and now – seasonal demand within the area additionally rises in the course of the summer season months, absorbing among the extra barrels,” Hvalbye added.
In a market evaluation despatched to Rigzone on Friday, Ahmad Assiri, Analysis Strategist at Pepperstone, highlighted the scheduled go to of President Trump to Saudi Arabia, noting that the journey is “more likely to highlight U.S. administration pursuits in conserving oil costs subdued”.
“This alignment in lowered oil worth, although in all probability briefly, might provide the nine-decade U.S.-KSA strategic partnership additional prosperity, conserving in thoughts that Saudi Arabia burns three million barrels of oil daily to cowl the nation’s want for electrical energy,” Assiri famous within the evaluation.
“An enormous demand in comparison with the complete oil consumption of Japan within the absence of nuclear-powered stations, a website the place the US holds a technological edge,” Assiri added.
“A nuclear-powered station take care of the U.S. means way more for the Saudis than what’s probably a short-term OPEC+ disagreement over quotas,” Assiri went on to state.
Rigzone has contacted the White Home, the Saudi Ministry of Overseas Affairs, and OPEC for touch upon Hvalbye and Assiri’s statements. On the time of writing, not one of the above have responded to Rigzone.
A press assertion posted on the U.S. Division of State web site on Might 11 highlighted that Secretary of State Marco Rubio will accompany President Trump to Saudi Arabia and Qatar, “the place the President will look to strengthen ties between the US and Gulf companions”.
“Secretary Rubio’s engagements with senior officers will advance options to international and regional challenges, broaden bilateral commerce and funding, and reaffirm our strategic partnerships,” the assertion famous.
A submit revealed on the Saudi Arabia Overseas Ministry’s official English X web page on Tuesday confirmed a video of Trump arriving within the Kingdom and being greeted by the Crown Prince.
“HRH the Crown Prince and the President of the US of America took a brief break within the airport’s VIP lounge, throughout which they exchanged cordial conversations and loved Saudi espresso,” a separate assertion posted on the overseas ministry’s English X web page acknowledged.
A launch posted on OPEC’s web site on Might 3 introduced that Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman “will implement a manufacturing adjustment of 411,000 barrels per day in June 2025 from [the] Might 2025 required manufacturing degree”.
“The eight OPEC+ international locations, which beforehand introduced extra voluntary changes in April and November 2023 … met just about on 3 Might 2025, to overview international market situations and outlook,” the discharge famous.
“In view of the present wholesome market fundamentals, as mirrored within the low oil inventories, and in accordance with the choice agreed upon on 5 December 2024 to start out a gradual and versatile return of the two.2 million barrels per day voluntary changes ranging from 1 April 2025, the eight collaborating international locations will implement a manufacturing adjustment of 411,000 barrels per day in June 2025 from Might 2025 required manufacturing degree,” it added.
The discharge highlighted that “that is equal to 3 month-to-month increments” and identified that “the gradual will increase could also be paused or reversed topic to evolving market situations”.
To contact the writer, electronic mail andreas.exarheas@rigzone.com
