PARIS: Saudi Arabia demonstrated its resolve to lift oil prices by slashing output ahead of the entry into force of new pact limiting production while Russia boosted output to a record level, the International Energy Agency said Friday.
World oil markets have been on a rollercoaster ride in recent months, with OPEC and its partners including Russia, often called OPEC+, agreeing to cut back production again from January in order to reverse a slump in oil prices on abundant production and worries about slower global growth.
In its latest monthly report, the Paris-based International Energy Agency said the Saudis took the lead by cutting output in December as prices tumbled by more than a third in just two months.
“Recently, leading producers have restated their commitment to cut output and data show that words were transformed into actions,” said the IEA.
“While Saudi Arabia is determined to protect its price aspirations by delivering substantial production cuts, there is less clarity with regard to its Russian partner,” it added.
But the cut was mostly due to the Saudis, with data indicating several OPEC members increased production last month.
The IEA said data show that Russia increased crude oil production in December “to a new record near 11.5 mbd (million barrels per day) and it is unclear when it will cut and by how much.”
OPEC members along with allies including Russia agreed in early December to trim production by 1.2 mbd from Jan. 1, in a bid to eliminate a production glut and shore up prices.
Just months earlier, they had relaxed production caps as prices shot higher on market worries about the impact of US sanctions on Iran, but Washington eventually granted waivers allowing several countries to continue to import Iranian oil.
Meanwhile, US production rose considerably more than expected last year, adding further to supplies, while concerns about demand emerged as the US-China trade spat deepened in the second half of last year.
The IEA said the US increased output by 2.1 mbd last year, the “highest ever” annual growth ever recorded.
The boom of shale oil production in the US this decade has redrawn the map of global energy politics as the nation no longer depends as heavily on imports and has even resumed exports.
The IEA said “the US, already the biggest liquids supplier, will reinforce its leadership as the world’s number one crude producer” in 2019.
“By the middle of the year, US crude output will probably be more than the capacity of either Saudi Arabia or Russia.”
The IEA left its estimate for global oil growth in 2019 unchanged at an increase of 1.4 mbd, saying “the impact of higher oil prices in 2018 is fading, which will help offset lower economic growth.”
It said there were signs that the rebalancing of the oil market will be gradual.
Saudis cut, Russians hiked output ahead of pact: IEA
Saudis cut, Russians hiked output ahead of pact: IEA
- OPEC members along with allies including Russia agreed in early December to trim production by 1.2 mbd from Jan. 1
Saudi Arabia raises over $2bn in February sukuk sale: NDMC
RIYADH: Saudi Arabia raised SR7.86 billion ($2.09 billion) from a domestic sukuk issuance in February, more than tripling January’s sale as the Kingdom accelerates funding through Shariah-compliant debt.
The issuance was split into five tranches, with maturities ranging from 2031 to 2041, the National Debt Management Center said in a release.
The largest portion — SR3.19 billion — matures in 2041, while smaller tranches include SR1.17 billion due in 2031, SR1.38 billion maturing in 2033, SR1.59 billion expiring in 2036 and SR510 million due in 2039.
February’s issuance marks a 248 percent increase from January, when the government raised SR2.26 billion, underscoring growing activity in Saudi Arabia’s local debt market as authorities continue to diversify funding sources.
“The National Debt Management Center announces the closure of February 2026 issuance under the Saudi Arabian Government SAR-denominated Sukuk Program with a total size of SR7.868 billion,” the release added.
Sukuk are Islamic financial instruments that provide investors asset-backed returns instead of interest payments, aligning with Shariah principles that prohibit conventional interest-based lending.
In recent years, the Kingdom’s debt market has experienced swift growth, with investors increasingly turning to fixed-income instruments as rising global interest rates reshape the financial landscape.
In January, a report published by Fitch Ratings revealed that Saudi Arabia’s debt capital market is expected to reach $600 billion in outstanding issuance by the end of 2026, cementing its position as the largest US dollar debt and sukuk issuer among emerging markets.
The report said outstanding Saudi debt surpassed $520 billion in 2025, an annual increase of 21 percent, with sukuk accounting for roughly 62 percent of the total.
The steady momentum in Saudi Arabia’s sukuk market highlights the broader expansion of the Kingdom’s debt markets, as domestic and international investors seek diversification and stable returns.
In 2025, the Kingdom’s dollar debt issuance surged by 49 percent to around $100 billion, with sukuk growth outpacing bonds.
In emerging markets excluding China, Saudi Arabia was both the largest dollar-debt issuer in 2025, with an 18 percent share, and the largest environmental, social and governance dollar-debt issuer, with more than a 26 percent share.
