Saudi Arabia has a new energy minister – the prince. And oil has grown in price up to $62.14

Prince Abdulaziz bin Salman Al Saud has been appointed the new Minister of Energy of Saudi Arabia, the Saudi news agency SPA reported.

He succeeded Khalid Al-Falih in this post.

The change of head of the energy department was one of the reasons for the increase in oil prices. On Monday traders reacted to Sunday news that the King of Saudi Arabia had dismissed the country's energy minister, Khalid al-Falih, by appointing one of his sons to this post.

The cost of November Brent futures on the London ICE Futures exchange by 8:20 Moscow time is $62.14 per barrel, which is $0.6 (0.97%) higher than the previous session close. As a result of trading on Friday, the price of these contracts was $61.54 per barrel, up to $0.59 (0.97%).

Futures on WTI for October in electronic trading on the New York Mercantile Exchange (NYMEX) by this time rose in price by $0.65 (1.15%) to $57.17 per barrel. According to the results of the previous session, the contract increased in price by $0.22 (0.39%), to $56.52 per barrel.

“There is a feeling that the dismissed Khalid Al-Falih has not been able to achieve the necessary price dynamics since 2016”, said Oanda Corp. analyst Jeffrey Halley. “Expectations that the new minister will take measures to reduce the oil supply on the market more quickly may support oil prices”.

On Wednesday, a two-day meeting of the OPEC+ Ministerial Monitoring Committee begins. The prince has long been a member of the delegation of Saudi Arabia to OPEC, has sufficient experience in the oil industry, say the Saudi media, commenting on the appointment.

The new Minister of Energy of the Kingdom, speaking at a session of the World Energy Council, noted that when building its work with OPEC, Saudi Arabia will strive to master the art of consensus and respect the opinion of each member of the cartel:

“The art of building consensus is something that needs to be acquired. I was present at four energy crises, and I know this bitter taste. But I also know the sweet taste of working together when everyone fulfills his obligations”, the minister said.

According to Al Saud, the importance and contribution of each and every to the organization must be emphasized.

As reported, Iran, once again under US sanctions, had tried to urge oil-producing countries for political support through OPEC. But under pressure from Saudi Arabia it received a refusal. As a result, Iran withdrew from the OPEC +, remaining a member of OPEC. After that, Iranian Oil Minister Bijan Namdar Zangeneh spoke about the risk of OPEC collapse.



Tags: oil

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