The global oil market will be challenging for OPEC+ members in 2025, although the likelihood of tougher sanctions on Iranian oil exports under the Trump administration may create space for production increases by other OPEC+ members.
While Iraqi leaders consistently emphasize the importance of Western investment in their energy sector, their actions instead are increasing Iraq’s dependence on Chinese markets and oil firms.
The sharp decline in oil prices raises difficult questions for OPEC+ and, if sustained, will have important implications for Saudi Arabia’s fiscal policy.
Oil flows are redirected as war and Houthi attacks on shipping in the Red Sea disrupt traffic.
While geopolitical tensions have the oil market “on edge,” the IEA expects a well-supplied market amid weaker demand.
The divergence between the IEA and OPEC outlooks is largely due to assumptions regarding the speed at which internal combustion engine vehicles will be replaced by electric vehicles.
A substantial drawdown on global oil stocks is forecast for the fourth quarter amid record oil demand, accelerating the rise in oil prices to the $100 per barrel threshold.
Saudi Arabia extends steep “voluntary” production cut through August but a weaker-than-expected Chinese economic recovery weighs heavily on market sentiment.
Despite a “voluntary” production cut announced by Saudi Arabia for July, economic uncertainty overshadowed the June 4 OPEC+ meeting.
Continuous innovation, efficient institutional coordination, and further international collaboration will be critical to ensuring the kingdom’s water security remains robust in the face of evolving challenges.
Learn MoreThrough its careful examination of the forces shaping the evolution of Gulf societies and the new generation of emerging leaders, AGSIW facilitates a richer understanding of the role the countries in this key geostrategic region can be expected to play in the 21st century.
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