Saudi Arabia has curtailed its crude oil production by an estimated 2 million to 2.5 million barrels per day, while the UAE has reduced output by approximately 500,000 to 800,000 barrels daily, Bloomberg reported.
Saudi Arabia's oil shipments via the Red Sea are on course to hit record highs in March although they are still far below the levels needed to compensate for the drop in flows from the Strait of Hormuz, shipping data showed.
Aramco reported strong 2025 results with adjusted net income of $104.7 billion, including $25.1 billion in Q4. Operating cash flow reached $136.2 billion for the year and $40.8 billion in Q4, with free cash flow of $85.4 billion.
Markets are already beginning to trade as if the Iran conflict will de-escalate — even though there is no formal resolution yet, says the CEO of one of the world’s largest independent financial advisory and asset management organisations.
Global oil prices fell sharply on Tuesday after surging to their highest levels in more than three years in the previous session, as signals of possible diplomatic progress in the Middle East eased fears of prolonged supply disruptions.
IMF Managing Director Kristalina Georgieva warned the escalating US-Israel-Iran conflict risks pushing global inflation higher, after oil prices surged more than 30 per cent in Asian trading to their highest levels since 2022.
Aramco warned the Strait of Hormuz disruption from the Iran war could have “catastrophic consequences” for global oil markets and trigger ripple effects across shipping, insurance, aviation, agriculture and automotive industries.
OPEC Plus agreed to raise April oil output by 206,000 barrels per day, citing stable market conditions and falling inventories, while maintaining flexibility to gradually reinstate its 1.65 million bpd voluntary production cuts if needed.
Iran's Revolutionary Guards warned on Saturday that no vessel would be allowed to pass through the Strait of Hormuz, a chokepoint through which nearly a fifth of the world’s oil supply passes.
OPEC+ may consider a larger-than-planned output increase of 411,000 barrels per day at a meeting on Sunday, Reuters said quoting two sources close to the talks.
