• 5 minutes Trump vs. MbS
  • 9 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Can the World Survive without Saudi Oil?
  • 20 mins WTI @ $75.75, headed for $64 - 67
  • 32 mins EU to Splash Billions on Battery Factories
  • 8 hours Petrol versus EV
  • 47 mins US top CEO's are spending their own money on the midterm elections
  • 10 hours The Dirt on Clean Electric Cars
  • 2 hours OPEC Is Struggling To Deliver On Increased Output Pledge
  • 23 hours The end of "King Coal" in the Wales
  • 2 hours The Balkans Are Coming Apart at the Seams Again
  • 21 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 24 hours These are the world’s most competitive economies: US No. 1
  • 4 hours 10 Incredible Facts about U.S. LNG
  • 13 hours E-mopeds
  • 3 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 1 hour Uber IPO Proposals Value Company at $120 Billion
Alt Text

Oil Prices Rise On Iran, Hurricane Outages

Oil prices recovered on Tuesday,…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

Influential Saudi Oil Minister Dismissed

Al-Naimi Saudi Oil Minister

A Saudi government overhaul which saw the dismissal of the long-time Saudi oil minister signals quite a lot—from the kingdom’s new economic ‘’vision’’ to the fallout from the global oil price crisis.

Ali al-Naimi was replaced after serving as an oil minister for 20 years and earning himself the reputation as the most formidable figure in the industry.

He will be replaced by Khaled al-Falih, a former Health minister, who also spent 30 years working for the state-owned Saudi Aramco, largely as chairman of the oil conglomerate.

Al-Naimi’s removal comes as Saudi Arabia has embarked upon major economic reforms aimed at curbing the country’s dependence on oil whose lowest prices in a decade has inflicted massive financial losses. Related: Self-Driving Vehicles May Be Closer Than You Think

The former oil minister was known for his firm position of maintaining the output levels following the advent of the U.S. shale boom, which finally led to a global supply glut and which ultimately a major price slump which has turned the industry on its head.

As it turns out, however, Al-Naimi’s game plan was not necessarily to the liking of the royal House of Saud, and particularly Prince Mohammed, the son of King Salman and the overseer of the kingdom’s economic policy.

Al-Falih will take over a ministry which will merge energy, industry and mineral resources department. Related: As Oil Markets Tighten, Geopolitical Events Matter Again

Almost three quarters of Saudi Arabia’s revenues come from oil and, as prices slid more than 30 percent last year alone, the country’s budget deficit in 2015 amounted to $98 billion, the widest since 1991. That figure led to an 80% increase of petrol prices across the country.

The economic reforms eyed by the Saudi government include a 5 percent sale of Saudi Aramco which Prince Bin Salman says is worth as much as $2.5 trillion. The large funds raised through the listing will be sunk into a sovereign wealth fund designed to stimulate fresh economic avenues for the nation.

Oil prices were up early on Monday on the Saudi news, which some might feel could herald a change in the production level, but also due to the oil put offline by the Canadian wildfires. But fell back over one percent as traders showed themselves concerned about the overnight crash in Chinese commodity markets.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News