Saudi Arabia's economy has contracted 4.8% year-on-year in the second quarter, according to flash estimates, highlighting the kingdom's continued dependence on oil revenues despite years of economic diversification efforts.

The decline was driven primarily by a 24.7% drop in oil-related activities, while non-oil sectors provided only limited support. The latest figures come as geopolitical tensions across West Asia continue to influence oil production, energy markets, and global supply chains.

Although Saudi Arabia's Vision 2030 aims to reduce reliance on hydrocarbons, the latest GDP data underscores the challenges of transforming an economy still heavily tied to crude oil exports.

Saudi Arabia's Economy Shrinks 4.8% as Oil Slump and West Asia Tensions Weigh on Growth

Organisation of the petroleum exporting countries, or OPEC, has agreed to raise its oil production target by 188 thousand barrels per day from August, extending its phased increase in supply. The decision follows similar output hikes for June and July and is part of the group's plan to gradually reverse production cuts introduced in 2023.

Global oil supply set to rise again in August 

While speaking at his first press conference since taking office, Iraqi oil minister Basim Mohammed said Iraqi exports through the waterway had become heavily dependent on the arrival of oil tankers, many of which were avoiding the route because of soaring insurance risks.

Iraq oil exports through Strait of Hormuz plunge from 93 million to 10 million barrels in April

OPEC+ producers plan to increase output by 188,000 bpd in June to stabilise global oil markets.

OPEC+ raises output quota after UAE withdrawal from cartel amid Iran conflict

Abu Dhabi was producing around 3.4 million barrels per day, or roughly 3 per cent of global crude supply, before production adjustments linked to regional conflict conditions. 

'No more exits for now': UAE is reassessing multilateral ties after its OPEC departure, rules out further withdrawals

Russia reaffirms support for OPEC+ after the United Arab Emirates' exit, warns of oil price swings and hopes that other countries will not follow the same pattern.

Russia backs OPEC+ stability after UAE exit, warns of oil price volatility

The UAE will become the largest oil producer to depart OPEC, representing a significant blow to the organisation and its de facto leader Saudi Arabia.

A long-brewing move? What led to the UAE’s exit from OPEC after prolonged strain within the group? 5 reasons

The UAE, which joined OPEC in 1967, will formally exit on May 1, ending nearly six decades of membership. As the group's third largest producer, its departure from OPEC and OPEC+, weakens the influence of these bodies over global oil supply.

UAE’s exit from OPEC: A sign of a widening rift with Saudi Arabia and a win for Trump — how?

UAE exits OPEC from May 1, 2026, a potential fragmentation of the petrodollar system, global markets, and rising currency shifts.

UAE exits OPEC: What it means for UAE, petrodollar system and global markets

UAE exits OPEC and OPEC+, citing long-term economic goals, oil production limits, and global instability, reshaping future crude oil markets worldwide

UAE exits OPEC: What is OPEC and how does it operate? Here’s all you need to know

United Arab Emirates is set to leave both OPEC and OPEC+ from May 1, marking a major shift in global energy politics. The move could reshape oil production strategies, influence crude prices, and alter alliances within the world’s biggest oil-producing bloc. Analysts say the decision reflects the UAE’s growing focus on independent energy policies and long-term economic diversification.


UAE Announces Exit From OPEC & OPEC+ To Pursue National Interests First

UAE Pivots From OPEC to Pursue National Interests First

By leaving the cartel, the UAE, the world’s seventh-largest oil producer, gains full autonomy over its production levels. This allows the country to push toward its stated goal of increasing capacity to 5 million barrels per day (bpd) by 2027, free from the constraints of OPEC+ quotas.

UAE announces exit from OPEC and OPEC+ effective May 1

The global oil market is facing its biggest supply disruption on record as the ongoing conflict involving Iran intensifies.

OPEC has flagged serious concerns over attacks on energy infrastructure, warning that restoring damaged facilities is both costly and time-consuming.

OPEC Signals Readiness for Output Boost

OPEC+ has decided to increase oil output by 137,000 barrels per day in December 2025, continuing a steady pattern of modest monthly rises after similar increments in October and November. However, the group plans to pause further production hikes during the first quarter of 2026 due to seasonal demand weakness and uncertainties surrounding sanctions on Russian producers.


OPEC+ Agrees to Moderate Oil Production Increase, Plans Early 2026 Pause 

The rise in prices tempered some concerns about supply additions; however, analysts expect near-term profits to be limited by a soft demand outlook. 

Will car fuel get more expensive? Oil prices surge after OPEC+ announces modest production

With oil prices near $70 and surplus risks rising, OPEC+ production surge tests global demand resilience amid US-Russia tensions and Trump inflation fight.

OPEC+ agrees to major supply hike as Trump eyes lower oil prices

Analysts believe that tariffs remain a potential drag on the market and could undermine industrial activity and travel, both key drivers of oil demand.

Oil prices steady after losses, weighed by tariff threats and OPEC outlook

Crude benchmarks retreat as markets weigh President Trump shifting trade strategy, a looming August 1 tariff deadline, strong US travel demand, OPEC+ output plans, and renewed geopolitical risks off Yemen.

Oil prices ease from two-week highs as markets await clarity on US tariffs

Oil prices fell as Trump renewed tariff threats and OPEC+ production increases stirred demand uncertainty and supply concerns, weighing on market sentiment.

Oil prices fall as traders assess US tariff threats, OPEC+ supply boost

The OPEC+, which includes Saudi Arabia, Russia, the UAE, and Iraq, has been gradually reversing a 2.2 million bpd production cut it began unwinding in April.

OPEC+ poised to accelerate oil output hike in August amid market volatility

Oil benchmarks drop nearly 12% for the week, the steepest fall in almost two years, as a surprise ceasefire between Israel and Iran eases supply fears, while traders weigh potential OPEC+ output increases and US rate-cut expectations.

Oil prices steady after Israel–Iran ceasefire and OPEC+ supply rumours

The alliance, which includes OPEC members and non-OPEC allies like Russia, has already hiked output by 411,000 bpd for both May and June 2025. 

OPEC+ eyes fresh oil output hike: What it means for global energy markets

Oil prices plunged 6% Thursday, with Brent crude falling to $70.44 a barrel, after OPEC+ accelerated its plan to increase output in May. The move added to losses sparked by President Trump's new tariffs, raising fears of a global trade war.

Oil prices drop 6% as OPEC+ plans output hike

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