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: 在线看片人成视频免费无遮挡| 疯狂做受xxxx高潮不断| 日本黄色一级大片| 无码一区二区三区在线观看| 国产精品午夜无码体验区| 亚洲欧美小视频| 521a成v视频网站在线入口| 欧美日韩不卡合集视频| 国产精品成人自拍| 亚洲中文字幕无码久久| 欧美影院在线观看| 曰批免费视频播放30分钟直播| 国产尤物在线视精品在亚洲| 久久精品99久久香蕉国产| 草草影院ccyy国产日本欧美| 无码中文av有码中文a| 午夜亚洲乱码伦小说区69堂| www.插插插| 永久免费无码网站在线观看个| 国内一级特黄女人精品毛片| 免费a级毛片在线播放| 99网站在线观看| 欧美挠脚心tickling免费| 国产猛男猛女超爽免费视频| 九九免费观看全部免费视频| 视频在线观看国产| 快拨出来老师要怀孕了| 伊人狼人综合网| 18videosex性欧美69| 日韩综合第一页| 国产一区二区三精品久久久无广告| 一级特黄性色生活片录像| 爱情岛论坛首页永久入口| 国产精品国产三级国产普通话a| 九九全国免费视频| 美女跪下吃j8羞羞漫画| 天天狠狠弄夜夜狠狠躁·太爽了| 亚洲日韩一区二区三区| 91香蕉在线看私人影院| 果冻传媒国产仙踪林欢迎你| 国产一级特黄高清免费大片|