Impact of Trump’s Visit to Saudi Arabia on the Oil Market: A Sign of Shifting Balance
An energy expert commented on the implications of Donald Trump’s visit to Saudi Arabia and its effect on the global oil market, stating that the United States is effectively experiencing two distinct phases of Trump’s administration. The first phase was characterized by the slogan “America First,” emphasizing national interests, while the second phase, with the slogan “Restoring America’s Greatness,” reflects that Washington no longer sees itself in its previous dominant position. It appears that oil and energy are among the tools the U.S. is using to regain its strength.
The expert added that Aramco earned nearly $200 billion in net profit last year, highlighting its crucial role in Saudi Arabia’s economy. During Trump’s recent visit to the Gulf region, contracts worth over $90 billion were signed between Riyadh and Washington, including a deal to purchase 1.2 million tons of LNG annually for 20 years.
The analyst also pointed to Saudi Arabia’s ambitious plans in tourism and culture, stating that the kingdom intends to attract investments and sign agreements with American companies to raise investments in these sectors to one trillion dollars. Although some previous agreements have yet to be implemented, these plans demonstrate Riyadh’s serious intention to diversify away from an oil-dependent economy.
He further emphasized that the drop in oil prices to the lowest level in four years has caused significant financial damage to Gulf countries, especially Saudi Arabia. The International Monetary Fund lowered its growth forecast for Saudi Arabia in 2025 from 3.3% to 3%, raising doubts about the kingdom’s ability to meet its $600 billion economic commitments.
The expert also noted that while Saudi-American oil relations have a long and complex history based on the petrodollar system, the U.S. no longer depends on oil imports from Saudi Arabia as it once did. This shift in approach has had a notable impact on U.S. regional policies, particularly in the Middle East, and may influence the nature of bilateral relations between the two countries.
