Saudi Replaces Oil Minister
Saudi Arabia’s Oil Minister is being replaced. What could it deliver to Crude oil? Well, crude oil is going up fast. This is triggered by the mentioned occurrence. Despite this, with the new oil minister of Saudi reportedly commenting that he will keep oil production at record levels.
The weekend replacement of longtime Saudi oil minister Ali al-Naimi with Saudi Arabia Oil Company chairman Khalid al-Falih is seen as confirmation that 30-year old Deputy Crown Prince Mohammad bin Salman who has been tagged as “Mr. Everything” by diplomats has been put firmly in charge of the nation’s broad energy policy by his father, King Salman bin Abdulaziz al Saud.
Analysts say that the said shift is significant. Saudi oil policy has always been developed institutionally, he said. While the 80-year-old Naimi, who had served as oil minister for more than two decades, has been a key player, he’s hardly been the sole architect. During Naimi’s tenure, Saudi Arabia has focused on maintaining production even in the face of falling prices in a bid to maintain market share.
The New 6-Year Low on Oil Rig Count –> https://t.co/WJSedX2Knh pic.twitter.com/ikFjOEnFpA
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Analysts likewise say that in the short term, that means Saudi Arabia’s strategy of pumping oil in a price war aimed at curtailing production by U.S. shale operators and other high-cost producers remains intact. It also means the Saudis will aim to maintain the spare capacity that would allow it to further ramp up production if needed—an ability that has long been at the center of Riyadh’s ability to influence the oil market.
This is opened up through the report of Bloomberg’s Ben Sharples on “Trending Business.” What could happen more now with the replacement of Saudi’s oil minister?