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Saudi Arabia claimed a victory this week after Brent crude prices touched above a symbolic $80 per barrel threshold, but analysts warn the kingdom still has to contend with a free-riding Russia as it looks to tighten global oil supplies.
People are seeing a rosier economic picture with the pace of interest rate rises cooling. The second half of the year generally also has higher oil demand, Adi Imsirovic, director of Surrey Clean Energy, and former head of oil at Gazprom's overseas trading arm, told Middle East Eye.
Oil hitting above $80 a barrel is a demand story, its not about supply, Imsirovic said.
Brents move above $80 per barrel (it has since gone a shade below) is symbolic for Saudi Arabia because that is the price point the IMF says the kingdom needs to balance its budget and plow funds into mega-projects like Neom and Red Sea island developments, designed to diversify its economy away from fossil fuels.
For months now, Saudi Arabia has pushed members of the Organisation of the Petroleum Exporting Countries (Opec) and an alliance of oil producers led by Russia to cut global crude supplies.