Saudi Energy Minister Removal Fails To Derail Oil Market

Saudi Energy Minister Removal Fails To Derail Oil Market

Saudi Arabia’s decision to replace its energy minister created a sense of uncertainty on the market; however the prices resumed the growth and refreshed new highs on Monday. During early Asian hours on Tuesday, the international oil marker Brent crude hit an intraday high above $63.00 and swiftly dropped to $62.70 by the time of writing. West Texas Intermediate – the US benchmark – shows similar momentum: WTI retreated from $58.40 to $58.00.

A decision to replace Khalid Al-Falih, one of the oil industry’s most powerful figures, may produce a long-lasting ripple effect on the industry, where the personality of now the former Saudi energy ministry and his personal connections played a vital role in reaching the agreement between OPEC and non-OPEC countries on limiting oil supplies.

Prince Abdulaziz bin Salman, the son of Saudi Arabia’s King Salman will take the position. Notably, this decision breaks a tradition that royal family members are not appointed to the position.

While the experts believe that the reshuffle will not lead to a major change in Saudi energy policy. However, the new minister may be more vigilant to promote measures focused on oil price growth. Anyway, the oil markets will watch Abdulaziz steps closely. The new Energy Ministry will speak at the World Energy Congress that will take place later this week in Abu Dhabi.

Saudi Energy Minister Removal Fails To Derail Oil Market

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