MOSCOW: OPEC and other producers including Russia are in final talks for an agreement, that may be signed in early July, to cooperate on oil supplies on a long-term basis, Japan’s Nikkei reported, citing Russian energy minister Alexander Novak.
Novak also told the Nikkei that discussions with OPEC on moving the date of the meeting to early July from the originally-planned dates of June 25-26 were nearly finalized.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers have since January 1 implemented a deal to cut output by 1.2 million barrels per day to support prices.
The alliance, known as “OPEC+,” was due to meet on June 25-26 or in early July to decide whether to extend the pact.
A proposal to create a formal body was abandoned earlier this year after the US Congress started moves to legislate against cartels in the oil industry.
But the Nikkei said the group was trying to make OPEC+ a permanent framework under an accord to be signed at the next meeting.
The report did not say whether Russia is willing to agree to extend the agreement on output reduction.
OPEC on Thursday cut its forecast for growth in global oil demand due to trade disputes and pointed to the risk of a further reduction, building a case for supply restraint through the rest of 2019.
Crude oil prices jumped 4 percent on Thursday after suspected attacks on two oil tankers in the Gulf of Oman sparked tensions between the United States and Iran and raised concerns over the safety of oil shipments through one of the world’s busiest sea lanes.
Prior to this latest scare, some OPEC members had been worried about the recent steep slide in prices, which have tumbled to $62 a barrel from April’s 2019 peak above $75, due to concern over the US-China trade dispute and a global economic slowdown.
OPEC said, in a monthly report published on Thursday, that world oil demand would rise by 1.14 million barrels per day (bpd) this year, 70,000 bpd less than previously expected.
OPEC, Russia nearing accord on long term oil supply coordination
OPEC, Russia nearing accord on long term oil supply coordination
- OPEC+ due to meet on June 25-26 or in early July to decide whether to extend the output cut
- OPEC on Thursday cut its forecast for growth in global oil demand due to trade disputes
Saudi economy grows 4.5% in 2025 as oil, non-oil sectors accelerate
RIYADH: Saudi Arabia’s real gross domestic product expanded by 4.5 percent year on year in 2025, driven by strong growth in both oil and non-energy activities, official data showed.
According to flash estimates released by Saudi Arabia’s General Authority for Statistics, oil activities in the Kingdom expanded by 5.6 percent in 2025 compared to the previous year, while non-oil operations and government activities rose by 4.9 percent and 0.9 percent, respectively, during the same period.
The latest report aligns with an October outlook from the International Monetary Fund, which projected Saudi Arabia’s GDP would grow by 4 percent in both 2025 and 2026.
Earlier this month, the World Bank forecast that the Kingdom’s GDP is projected to expand by 4.3 percent in 2026 and 4.4 percent in 2027, up from an expected 3.8 percent in 2025.
“The main driver of real GDP growth in 2025 was non-oil activities, which contributed 2.7 percentage points, while oil activities with 1.4 pp, government activities at 0.1 pp and net taxes on products at 0.2 pp, also contributed positively,” said GASTAT.
Momentum accelerated toward year-end. Real GDP expanded 4.9 percent in the fourth quarter from a year earlier, led by a 10.4 percent surge in oil activities, while non-oil sectors grew 4.1 percent. Government activities contracted 1.2 percent on an annual basis in the quarter.
“The main driver of growth in real GDP of the fourth quarter of 2025 was oil activities, which contributed 2.5 pp, non-oil activities contributed 2.3 pp and net taxes on products contributed 0.2 pp, while government activities had a negative contribution of 0.2 pp,” added the authority.
Saudi Arabia’s seasonally adjusted real GDP recorded growth of 1.1 percent in the fourth quarter of 2025 compared to the previous three months.
In the fourth quarter, oil activities witnessed a quarter-on-quarter growth of 1.4 percent, while non-oil activities expanded by 1.3 percent during the same period.
Government activities, however, recorded a decline of 0.2 percent in the fourth quarter compared to the previous three months.
Earlier this month, a separate analysis by Standard Chartered said the Kingdom’s GDP is expected to expand by 4.5 percent in 2026, outperforming the global growth average of 3.4 percent, driven by sustained momentum in both hydrocarbon and non-oil sectors.
