The Annual Offshore Oil & Gas Event
logo

The 25thBeijing International Offshore Oil & Gas Exhibition

ufi

BEIJING,CHINA

March 26-28,2025

LOCATION :Home> News > Industry News

Saudis' new oil boss seen chasing record output to stymie shale

Pubdate:2016-05-09 10:24 Source:mcc Click:
RIYADH (Bloomberg) -- Saudi Arabia will probably keep producing crude at near-record levels under its newly appointed oil minister, Khalid Al-Falih, as the world’s largest exporter sticks with his predecessor’s policy of defending market share against higher-cost shale.
 
Al-Falih, also chairman of the state producer Saudi Arabian Oil Co., said on his first day in office on Sunday that he will maintain the kingdom’s oil policy. His predecessor, Ali al-Naimi, had been leading a policy prioritizing sales over prices since 2014, driving some higher-cost producers, including U.S. shale drillers, off the market. In so doing, Saudi Arabia boosted output, adding to a supply glut. The strategy is showing signs of succeeding this year, with prices gaining more than 60% since tumbling to a 12-year low in January.  
 
Saudi Arabia could exceed its record output of more than 10.5 MMbopd if it pumps more to meet a seasonal surge in domestic demand during the summer months, analysts from Emirates NBD PJSC and Qamar Energy said. The country, with the world’s second-largest oil reserves, pumped 10.27 MMbpd in April.
 
“If the market considers the appointment as signaling more of the same for Saudi policy, that could allow prices to continue following their gradual trend upward,” Edward Bell, commodities analyst at Emirates NBD, said Sunday by phone from the Dubai-based bank. Continuity in Saudi policy may be offset by the immediate impact of Canadian forest fires forcing about 1 million barrels of daily crude production offline, he said.
 
Saudi Arabia appointed Al-Falih on Saturday to head the newly expanded Ministry of Energy, Industry and Mineral Resources. He replaces al-Naimi, a 20-year veteran in the post. Al-Falih takes over the ministry responsible for most of the nation’s income as the biggest producer and de facto leader of OPEC embarks on an economic overhaul designed to make it less reliant on petroleum.
 
“Saudi Arabia will maintain its stable petroleum policies. We remain committed to maintaining our role in international energy markets and strengthening our position as the world’s most reliable supplier of energy,” Al-Falih said in a statement on Sunday.
 
Brent crude plunged to less than half of its annual average of more than $100/bbl from 2011 through 2014, adding urgency to the push for changes in Saudi Arabia and other energy exporters in the region. Brent crude closed at $45.37/bbl on Friday in London, a partial recovery from its intraday low of $27.10/bbl on Jan. 20.
 
“They’ll continue the policy of relatively high oil production with no freeze and no deals,” Robin Mills, CEO at consultant Qamar Energy in Dubai, said Sunday by phone. “It depends how aggressive the Saudis are in pursuing high production for extended periods and how willing they are to accept lower prices for longer.”
 
Non-OPEC Supply
 
“Al-Falih has been backing the policy, and he had been taking a more public role as a government official in defending the stance,” Mills said. “There’s a new king, new power behind the throne, and now you have a new oil minister.”
 
Non-OPEC supply is poised to slip by about 700,000 bopd this year, while demand is forecast to rise by about 1.2 MMbopd, according to the International Energy Agency. Al-Falih, speaking in January at the World Economic Forum in Davos, Switzerland, indicated that the country plans to act vigorously to defend its market share and exports as the market rebalances. He’ll face that challenge when he represents Saudi Arabia for the first time at the next meting of the Organization of Petroleum Exporting Countries on June 2.
 
"If oil prices continue to be low, we will be able to withstand them for a long, long time," he said in Davos. 
 
Prince Mohammed
 
Analysts suggested Al-Falih may take a harder line in upholding the Saudi market share policy within OPEC. He’s a close ally of Deputy Crown Prince Mohammed bin Salman, who has taken a hands-off approach in letting oil markets determine crude prices, rather than seeking to target a level. The prince is letting the market dictate prices, with Saudi Arabia only adjusting its production to respond to demand.
 
“Al-Falih will probably be more direct with its OPEC partners, like Venezuela and Iran,” Fabio Scacciavillani, chief economist of the Oman Investment Fund, said in an interview Sunday in Dubai. “It’s not an appointment in view of the next OPEC meeting. It’s an appointment for the next 10 years and beyond.”
 
Venezuela, holder of the largest crude reserves, and Saudi Arabia’s regional rival Iran have traditionally pushed for curbing output at times of low prices. Iran, emerging from international economic sanctions, is putting supply back on the market and challenging the Saudis for new buyers in Asia. A Saudi- and Russian-led meeting in Doha last month ended in disagreement about a plan to freeze production to prop up prices after Iran refused to limit its output.
 
“Until supply balances with demand, it’s unlikely there will be any major change in Saudi production,” Scacciavillani said. “Saudi energy policy is a function of reality in oil markets, not a function of choice.”
主站蜘蛛池模板: 我要c死你小荡货高h视频| 亚洲激情小视频| 特黄特黄一级高清免费大片| 性做久久久久免费看| 四虎影视大全免费入口| 中文字幕无码精品亚洲资源网| 色www免费视频| 成人国产网站v片免费观看| 又粗又硬又大又爽免费视频播放| 上原亚衣一区二区在线观看| 精品亚洲成a人无码成a在线观看| 好紧好爽好大好深在快点视频| 免费看一级性生活片| chinese18国产高清| 波多野结衣一区2区3区| 国产精品自在线拍国产手青青机版 | 久久精品国产只有精品2020| 黄网站在线观看高清免费| 日韩一级在线视频| 国产三级毛片视频| 三级黄色在线看| 猫咪www免费人成网站| 国内精品久久久久久99| 亚洲人成日本在线观看| 麻豆精品不卡国产免费看| 无码日韩精品一区二区三区免费| 午夜无码人妻av大片色欲| eeuss影院免费直达入口| 热99re久久精品天堂vr| 国产精品泄火熟女| 亚洲VA中文字幕| 草莓视频成人appios| 影音先锋男人站| 亚洲热在线视频| 色综合67194| 无码人妻精品一区二区三区不卡| 六月丁香激情综合成人| 91啦中文成人| 最近2019中文字幕mv免费看| 国产三级一区二区三区| 一个人看的视频www在线|