• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 17 hours US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 2 hours How many drilling sites are left in the Permian?
  • 17 hours "Undeniable" Shale Slowdown?
  • 2 mins Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 1 day China To Promote Using Wind Energy To Power Heating
  • 20 hours Overheating the Earth: High Temperatures Shortened Alaska’s Winter Weather
  • 1 day Gas Flaring
  • 31 mins Case against Trans Mountain Begins
  • 1 day Climate Change Protests
  • 8 hours U.S. Refiners Planning Major Plant Overhauls In Second Quarter
  • 16 hours Everything Is Possible: Germany’s Coal Plants May Be Converted to Giant Batteries
  • 9 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 2 days Japan’s Deflation Mindset Could Be Contagious
  • 1 day Tax Credits for Energy Storage

Breaking News:

Guaido Takes Strides To Topple Maduro

Alt Text

Trump Weighs In On Controversial Occupied Territory

U.S. President Donald Trump has…

Alt Text

What Would The End Of OPEC Mean?

OPEC is looking increasingly fractured…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

Oil Market Gauges Shake-Up In Saudi Royal Succession

Saudi King Salman made on Wednesday his favorite son and Deputy Crown Prince, Mohammed bin Salman, Crown Prince, empowering the 31-year-old reformist as next in line to the throne in a move suggesting more hawkish Saudi foreign policy in regional conflicts, but not a rush into altering the Kingdom’s current oil policies and strategies.

Mohammed bin Salman is replacing his elder cousin and king’s nephew, veteran security chief Prince Mohammed bin Nayef.

According to analysts briefed by Reuters, the move was expected, but the timing is surprising, and Mohammed bin Salman’s rapid rise into power has created some discord within the royal family and has made Saudi policy more unpredictable than in previous years and decades.

Although the new Crown Prince is unlikely to launch sweeping changes in Saudi oil policies, his promotion could make the Kingdom’s policy line toward regional archrival Iran and now-isolated Gulf state Qatar, harder, analysts reckon.

“The elevation of Mohammad Bin Salman to the Crown Prince will likely mean minimal change to oil production policy but could bring more aggressive foreign policy moves that bring back the political risk premium,” RBC Capital Markets said a research note, as quoted by Reuters.

As far as pure oil strategies are concerned, the new crown prince was already overseeing those, and is in charge of the Saudi plan to list a small stake in Aramco, expected to take place some time next year.

Even if foreign policy were to remain aggressive, we don’t see any change in oil policy yet. If anything, with the initial public offering (IPO) the center stage, the Kingdom needs higher prices,” Amrita Sen, chief oil analyst at Energy Aspects, told CNBC in an email on Wednesday.

Related: Oil Markets Unmoved By Brewing Conflict In The Middle East

According to Helima Croft, global head of commodity strategy at RBC Capital Markets, Saudi Arabia is “absolutely committed” to sticking to the OPEC deal regardless of the succession shuffle.

“They have some time to deal with this downtrend in prices as long as they can get prices on a better path in 2018 so I think they can sit tight, let the cuts play out, let the inventories draw down and I don’t think they’re worried about the next couple of weeks. I think they’re playing for 2018,” Croft told CNBC.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • hazleshades on June 22 2017 said:
    Everything in Saudi Arabia is as stable as before, even the Saudi stock market is positively influenced. I am always amazed at the smoothness of the Saudi succession process. Moreover, this only can proof the inner strength of Saudi Arabia, given that it is in a war with Houthis, and its focus on it financial reform vision.

Leave a comment




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