JEDDAH: Oil prices have rebounded since Friday as speculators expect growth in US crude oil production to slow, following a fall in the rig count and a small unexpected drop in weekly US production.
The future contracts for Brent and West Texas Intermediate (WTI) in London and New York may see another and greater push in July, as fewer oil shipments from the Organization of the Petroleum Exporting Countries (OPEC) hit the market.
The reduction in exports from OPEC countries in June is expected to have an impact on prices in July because it takes around 50 to 55 days for the crude shipped from the Middle East to reach East Asia and North America.
“The fall in exports will lead to a fall in stored crude onshore and offshore, but the main question (is): Will OPEC maintain the cuts?” said Abdulsamad Al-Awadhi, a London-based analyst and former national representative for Kuwait at OPEC. “Few people in the market believe that OPEC countries will not raise exports once they see prices improve.”
OPEC’s oil production is expected to show an increase in June, according to different market surveys from agencies including Reuters, as more oil is produced in Libya and Nigeria. However, OPEC as a whole is expected to ship less crude despite the high pumping from some oil fields.
According to different oil tanker estimates compiled by Arab News, crude exports from Iraq, Iran, Kuwait and the UAE edged lower in June.
The fall in exports from OPEC last month is expected to be between 300,000 to 400,000 barrels per day (bpd), an amount expected to support upward price movement but not significant enough to lower global oil stocks, which have been above their five-year seasonal average for a long time.
Saudi Arabia has delivered on its promise to cut exports to the US in June, data from different oil-tanker trackers showed, but the country has shipped more crude to Asia.
“We are seeing a fairly widespread rebound in the June numbers,” Matt Smith, director of commodity research at ClipperData was quoted as saying by CNBC.
“That has been the trend of OPEC loadings all year: Move to compliance and move out of it from an export perspective.”
High compliance by Gulf producers Saudi Arabia and Kuwait helped keep OPEC’s adherence with its supply curbs at a historically high 92 percent in June, compared with 95 percent in May, a Reuters survey published on June 30 found.
Oil prices may improve as OPEC exports fall
Oil prices may improve as OPEC exports fall
Saudi Arabia’s foreign reserves rise to a 6-year high of $475bn
RIYADH: Saudi Arabia’s foreign reserves climbed 3 percent month on month in January to SR1.78 trillion, up SR58.7 billion ($15.6 billion) from December and marking a six-year high.
On an annual basis, the Saudi Central Bank’s net foreign assets rose by 10 percent, equivalent to SR155.8 billion, according to data from the Saudi Central Bank, Argaam reported.
The reserve assets, a crucial indicator of economic stability and external financial strength, comprise several key components.
According to the central bank, also known as SAMA, the Kingdom’s reserves include foreign securities, foreign currency, and bank deposits, as well as its reserve position at the International Monetary Fund, Special Drawing Rights, and monetary gold.
The rise in reserves underscores the strength and liquidity of the Kingdom’s financial position and aligns with Saudi Arabia’s goal of strengthening its financial safety net as it advances economic diversification under Vision 2030.
The value of foreign currency reserves, which represent approximately 95 percent of the total holdings, increased by about 10 percent during January 2026 compared to the same month in 2025, reaching SR1.68 trillion.
The value of the reserve at the IMF increased by 9 percent to reach SR13.1 billion.
Meanwhile, SDRs rose by 5 percent during the period to reach SR80.5 billion.
The Kingdom’s gold reserves remained stable at SR1.62 billion, the same level it has maintained since January 2008.
Saudi Arabia’s foreign reserve assets saw a monthly rise of 5 percent in November, climbing to SR1.74 trillion, according to the Kingdom’s central bank.
Overall, the continued advancement in reserve assets highlights the strength of Saudi Arabia’s fiscal and monetary buffers. These resources support the national currency, help maintain financial system stability, and enhance the country’s ability to navigate global economic volatility.
The sustained accumulation of foreign reserves is a critical pillar of the Kingdom’s economic stability. It directly reinforces investor confidence in the riyal’s peg to the US dollar, a foundational monetary policy, by providing SAMA with ample resources to defend the currency if needed.
Furthermore, this financial buffer enhances the nation’s sovereign credit profile, lowers national borrowing costs, and provides essential fiscal space to navigate global economic volatility while continuing to fund its ambitious Vision 2030 transformation agenda.
