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Editor’s Note: The “Oil Prices Today” section is updated daily or weekly, and the rest of the content remains static.
Oil is not just a commodity in Saudi Arabia, but rather the state’s largest source of revenue. Therefore, its price reflects on government spending and the stock market, and even on the decisions of individual investors.
Oil Prices Today
| Crude | Price (USD per barrel) | Daily Change |
|---|---|---|
| Brent Crude (November contract) | 105.13 | +2.05 (+1.99%) |
| West Texas Intermediate (November contract) | 93.76 | +1.60 (+1.74%) |
Oil prices rose in Thursday’s trading, as Brent crude climbed about 2% to close above $105 a barrel, while West Texas Intermediate (WTI) rose 1.7% to around $93.8, keeping prices at historically high levels since the supply disruptions in the region this year.
What are Brent Crude and West Texas Intermediate?
They are two benchmark prices upon which oil is priced around the world. According to the US Energy Information Administration, the three most important global benchmarks are Brent, West Texas Intermediate, and Dubai/Oman. Brent is the most widely used globally, and it is a blend of oils produced in the North Sea.
As for WTI, it is the main benchmark for US oil. The rest of the oil types are priced at a differential to these benchmarks depending on their quality and transportation costs. When you hear in the news that “oil has risen,” it most often refers to the price of Brent.
What Drives Oil Prices?
The price of oil is the result of a continuous balance between supply and demand, but prices are not only affected by current supply and demand, but also by future expectations. Therefore, the price may move sharply due to news that has not yet affected actual production.
On the supply side, the OPEC organization and the OPEC+ alliance (which includes non-member producing countries, the largest being Russia) play a pivotal role. According to the US Energy Information Administration, OPEC countries produce about 35% of the world’s crude oil, and their exports account for nearly half of the internationally traded oil. Historically, prices rise when the organization cuts its production targets. Added to this is US shale oil production, and the spare production capacity available to compensate for any interruption.
On the demand side, consumption is linked to the health of the global economy. When the Chinese and American economies grow, the need for fuel increases, and when signs of a recession loom, demand and prices fall. The price of the dollar also has an effect, because oil is priced in it, so a strong dollar makes oil more expensive for buyers with other currencies.
Geopolitical events can change the whole picture in a matter of days. In the first quarter of 2026, for example, oil prices rose sharply after supply disruptions in the Middle East, and Brent rose more than WTI due to the impact on shipping and flows near the Strait of Hormuz. This is a clear example of expected risks being added to the price even before the actual size of the shortage becomes clear.
Why Does the Price of Oil Matter to an Investor in Saudi Arabia?
- First: The General Budget. Oil remains the largest source of state revenue. In the first quarter of 2026, oil revenues amounted to 144.72 billion riyals out of total revenues of 260.97 billion riyals, which is more than half of the revenues. When oil revenues change, the volume of government spending on projects may change, which is felt by many sectors in the economy.
- Second: The Stock Market. Aramco and petrochemical stocks are directly affected by oil prices, and sentiment often extends to the entire TASI index, because these companies hold a significant weight in it.
- Third: Sectors Linked to Government Spending. Such as contracting, building materials, banks, and retail, which benefit from increased spending and are affected when it is reduced.
Is the Saudi Economy Still as Dependent on Oil as it Used to Be?
Not to the same degree. According to a KPMG report on the 2026 budget, the non-oil sector accounted for 55.6% of the real gross domestic product in the first half of 2025, compared to 45.4% in 2016, i.e., before the launch of Vision 2030.
This means that the economy has become more diversified, and that the impact of oil on economic growth is less than it was a decade ago. However, government revenues still rely heavily on it, and therefore the price of oil remains an important indicator for everyone who follows the Saudi economy and market.
Does a Rise in Oil Always Mean a Rise in the Saudi Market?
Not always. The relationship is strong but not automatic.
- Oil may rise while the market falls, due to higher interest rates or weak results for major companies.
- Oil prices may rise due to a geopolitical crisis that simultaneously raises concerns among investors, thus weakening the market despite the rise in oil.
- Some companies are harmed by the rise in oil, such as airlines and companies for which fuel represents a large part of their costs.
- Therefore, treat the price of oil as an important factor among several factors, not as a sole indicator.
How to Benefit from Following Oil Prices as a Beginner?
You do not need to trade oil itself. It is enough to follow its general trend to understand why some of your stocks move, and to read economic news with greater awareness. If your portfolio is concentrated in energy and petrochemical stocks, you are exposed to oil fluctuations more than you think, and diversifying into other sectors mitigates this effect.
Someone who invests for many years does not need to react to every daily movement in oil, but rather needs to understand the major trends and their impact on the companies they own.
Sources
- US Energy Information Administration: The Role of OPEC in Oil Prices
- US Energy Information Administration: Benchmark Indicators for Oil Pricing
- US Energy Information Administration: The Rise in Oil Prices in the First Quarter of 2026
- Saudi Gazette: Budget Performance in the First Quarter of 2026
- KPMG: Saudi Budget Report 2026
- Ministry of Finance: State General Budget Statement 2026
- Disclaimer: This content is informational and educational, and is not considered an investment recommendation.
