The oil-price crash is set to have far-reaching consequences for Saudi Arabia's finances and vast economic ambitions. The kingdom's budget deficit may soar to $67 billion this year, according to projections shared by Goldman Sachs.
Crude oil and natural gas prices dip as demand forecasts weaken. All eyes now turn to the May 5 OPEC+ meeting for possible market-moving policy shifts.
Oil-dependent governments are coming under pressure from the lowest crude prices since the COVID-19 pandemic, with officials preparing policy responses for a drop in revenue such as issuing more debt and reducing spending.
Oil prices fell on Friday and were set to drop for a second week on concerns prolonged trade war between the United States and China, the world's largest economies, will crush crude consumption as their dispute curtails economic growth.
Oil fell in the early Asian session amid jittery markets. President Trump's 90-day pause on steep ‘reciprocal' tariffs for most countries doesn't alleviate uncertainty, ANZ Research analysts said.
A sharp rebound after testing a long-term channel suggests crude oil may be stabilizing, though further volatility and support tests remain possible.
“There's a lot of downside risk here” with oil and commodities “in the cross-hairs” of the trade war, Jeff Currie, chief strategy officer for energy pathways at Carlyle Group, said on Bloomberg Television.
The crude oil market continues to see a lot of noisy behavior, as we are trying to form some kind of range at this point. The markets will continue to try to get a grip on what happens next with the tariff war.
Trump's decision to increase tariffs on China, the world's second-largest economy and biggest crude importer, to an eye-watering 125% weighed on the market.
WTI crude oil rebounds to $63, while natural gas forms a bullish hammer at the support zone.
Oil rose in the early Asian session, boosted by President Trump's 90-day pause on higher U.S. tariffs for most countries.
U.S. crude oil inventories rose for a second consecutive week, climbing 2.6 million barrels, amid an increase in net imports.