Saudi Arabia in April 2026: the most important developments in economy
In April 2026, the most widely reported economic story concerning Saudi Arabia was the United Arab Emirates' announcement on April 28 that it would leave OPEC and OPEC+ after nearly 60 years, effective May 1. The UAE said it would pursue an independent output policy and raise production capacity to 5 million barrels per day. Analysts said the exit could weaken the cartel's influence over oil prices, and reports referred to a long-running dispute with Saudi Arabia over production quotas. President Donald Trump welcomed the move, and Russia's government said it was confident OPEC+ could adapt. Oil prices rose above $110 a barrel that day.
The Iran war and the disruption of the Strait of Hormuz shaped the rest of the month. OPEC's output fell by more than a quarter in March, described as the worst supply shock in decades. OPEC+ agreed on April 4 and 5 to raise output by 206,000 barrels per day in May, conditional on the reopening of the strait. Saudi Arabia set record premiums for its crude, including a $19.50 premium for Asia, and was reported to be considering a sharp cut for June. Iran attacked the Jubail petrochemical complex, Saudi Arabia's east-west pipeline was hit, and the SATORP refinery was shut down. On April 12 Saudi Arabia said the pipeline had returned to its full capacity of 7 million barrels per day. South Korea and other buyers sought supplies through the Red Sea, and a South Korean tanker carrying Saudi crude used that route on April 17.
Saudi Arabia also moved to support Pakistan, as Pakistan faced a debt repayment deadline to the UAE. Reports gave the amount of Saudi support between $3 billion and $8 billion, including an immediate $2 billion deposit. Saudi Arabia approved the 2026-2030 strategy of its Public Investment Fund, extended a $5 billion facility through 2028, and was reported to have pulled funding from the LIV Golf tour. Saudi Aramco received an AAA credit rating, and the kingdom's largest banks reported better-than-expected first-quarter profits.
by WorldBrief & Maksim Micheliov | AI-generated summary
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