Prince Abdulaziz bin Salman, then State Minister for Saudi Arabia's Energy Ministry, left, listens as Khalid Al-Falih, the former Energy and Industry Minister/Stefan Wermuth

Markets

Oil rises as new Saudi energy minister signals OPEC+ cuts to continue

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Khalid Al-Falih, the former Saudi Energy Minster, had been the face of Organisation of Petroleum Exporting Countries (OPEC) diplomacy over the past three years, as the producers’ group has sought to counter the rising tide of US shale oil that flooded markets.

Monday 09, September 2019

Oil rose for the fourth day after Saudi Arabia’s new Energy Minister signalled that OPEC and its allies will continue with production cuts as the group prepared to gather in Abu Dhabi, reported Bloomberg.

Prince Abdulaziz bin Salman, who was appointed as the new energy minister following the dismissal of Khalid Al-Falih, said that there will be no radical change in the policy of OPEC+, which has cut crude production this year to prevent a glut and shore up prices.

Additionally, the UAE energy minister promised a push to get all members committed to curbs but said there is no recommendation to make deeper reductions.

Oil capped a second weekly gain last week following a decline in US crude stockpiles and efforts from Federal Reserve Chairman Jerome Powell to calm fears of a possible recession.

Prices were further supported by Prince Abdulaziz’s remarks, while a Russian official said his country intends to maintain its critical alliance with Saudi Arabia following the appointment.

Prince Abdulaziz served as Deputy Petroleum Minister for a dozen years and most recently as minister of state for energy since 2017. He takes charge as the OPEC and its allies, most notably Russia, work to bolster prices at a time when a raging trade war between the US and China weighs on global demand.

The new Saudi Energy Minister said that the trade war has put a fog around the oil market, but added that he is not too concerned about US shale output.

 

TAGS : OPEC+, OPEC, US shale, Khalid Al-Falih, Prince Abdulaziz bin Salman, production cuts

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