Bloomberg: Saudi Arabia Puts Putin On The Back Foot
Bloomberg: Saudi Arabia Puts Putin On The Back Foot1.07.2025, 21:13 3,516 Riyadh is flooding the market with oil.Riyadh is increasing oil exports in a bid to regain lost ground in the global market.This is according to Bloomberg.In June, the kingdom increased oil exports by about 441,000 barrels per day - a 7% increase compared to May. Total supplies reached 6.36 million barrels per day, the highest in 13 months.This move looks particularly telling against the backdrop of the fact that the country is now traditionally experiencing increased demand for fuel to run air conditioners and desalination units, with temperatures in Riyadh exceeding 40 degrees Celsius. Despite this, the Saudi authorities continue to increase shipments to foreign markets.Exports go through the Persian Gulf and the Strait of Hormuz, a strategically important route that remains stable despite the effects of the Iran-Israel conflict.The growth in supplies is ahead of official quotas under the OPE+ agreement, whose members have already agreed to increase production by 411 thousand barrels per day for May, June and July. Saudi Arabia is allowed to add 167,000 barrels monthly, but current volumes suggest a much more aggressive strategy.The coalition is now considering further quota increases for August. Ministers will discuss the decision next Sunday in a video conference.Interestingly, the export surge has coincided with a temporary easing of tensions between Iran and Israel - oil prices have fallen to $67 a barrel, with futures down 12% in London over the past week.Saudi Arabia appears to have gone along with American interests and is cutting the cost of barrels. In June, analysts estimate that about 190 million barrels of oil left the country's ports on the Persian Gulf and Red Sea.In the meantime, Saudi Arabia's domestic oil consumption has also increased significantly. According to the Joint Organizations Data Initiative, it increased by about 600,000 bpd during the warm period compared to the winter months. From January to April, consumption increased by 100 thousand bpd.Riyadh's decision to open the oil tap came as a surprise to the markets. The authorities explain it by the desire to regain market share, which they have lost in recent years due to competition with shale oil producers in the United States and other suppliers.So Saudi Arabia is actually changing course: from the previous policy of restraining production - to an aggressive return to the world market. And it does so at a time when even minimal fluctuations on the oil front can significantly affect geopolitics.Depreciating oil is becoming a serious challenge for Russia, whose economy is critically dependent on commodity exports. At current prices, revenues to the Russian budget are noticeably declining, especially against the backdrop of rising costs of the war against Ukraine. Moscow's financial sustainability is increasingly undermined, and the reserves accumulated in the pre-war years are becoming insufficient to compensate for the budget deficit.PATREONSupport the website Write your comment You can support the website Charter97.orgMULTI-CURRENCY ACCOUNT FOR ASSISTANCE:Bank's name: Bank Millennium S.A.Address: ul. Stanislawa Zaryna, 2A, 02-593, WarszawaIBAN: PL97116022020000000216711123SWIFT: BIGBPLPWName of the account holder: Fundacja “KARTA ‘97”Purpose/title of payment: Donation for statuary aimsYou can contact us by the e-mail charter97@gmail.comFollow Charter97.org social media accountsFacebookYouTubeX.comvkontakteok.ruInstagramRSSTelegram
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