The recent news of the Saudi oil minister’s removal, after a 20-year mandate is being interpreted by many analysts as the kingdom gearing up for major change and a power-play on world oil markets. “You’re going to see a much more robust Saudi Arabia going forward. There’s no question about it,” told one such observer to CNBC’s “Squawk Box.”
Saudi Arabia is likely to maintain its high crude production policy, which prevents oil prices from bouncing back and allow high-cost producers like U.S. shale frackers from breaking even. This strategy is also said to be closely related to its rivalry with Iran, which is working hard to increase its market share now that key economic sanctions have been lifted.
Al-Naimi, 80, who’s been in office since 1995, has long been the face of the Saudi energy policies. His seat will soon be filled by Khalid al-Falih, currently chairman Saudi Aramco.
As for any possibility of slowing down production any time soon, deputy crown prince Mohamed bin Salman announced that any change in policy will have to be replicated by Iran. Which doesn’t seem to be in the works, since Iran is eying a bigger slice of the pie.
The three-year slide of oil prices has delivered a major hit to the financial stature of Saudi Arabia, primarily because of their status as the world’s top oil producer. While that title has seemingly fluctuated in the past year with Russia, the economic punch that those two nations provide has the ability to provide an…
During an economic forum in Jeddah, Saudi Arabia and the West African nation of Equatorial Guinea came to an agreement on May 11 that brings the two countries together on a variety of business projects. One of those is an agreement that will help finance what will be the region’s largest terminal for oil storage….
Though the impact of Saudi Arabia within the American oil market has been diminished over time, their ability to maintain a very clear presence once again came into focus on May 1. That was when Saudi Aramco, the Kingdom’s state-run oil company, finalized an agreement to take complete control of the largest oil refinery in…
