No change in Saudi oil policy towards OPEC

One of Saudi Aramco’s oil terminals

A Saudi official told Reuters that Saudi Arabia’s policy in the oil market will continue unchanged, after the appointment of Prince Abdul-Aziz bin Salman, as a Minister of Energy, succeeding Khalid al-Falih, who was relieved of the post.

The Saudi official added that the world’s biggest oil exporter would continue to abide by an OPEC-led output cut deal.

“There is no change in Saudi oil policy or Saudi Arabia’s policy towards OPEC. Prince Abdul-Aziz will work to strengthen cooperation between OPEC and non-OPEC producers,” the official said.

Royal decrees were issued in Saudi Arabia at dawn on Sunday to relieve the former energy minister, Khalid Al-Falih from his post and appoint Prince Abdul-Aziz bin Salman bin Abdul-Aziz Al Saud as energy minister.

Another Royal Decree was issued to relieve Eng. Abdul-Aziz bin Abdullah bin Ali Al-Abdul-Karim, the former deputy minister of energy, industry, and mineral resources for Industrial Affairs from his post, and appoint Osama bin Abdul-Aziz Al-Zamil as deputy minister of industry and mineral resources.

A Royal Decree was issued appointing Prince Sultan bin Ahmad bin Abdul-Aziz Al Saud as ambassador of Saudi Arabia to the Kingdom of Bahrain at the excellent rank.

Brent crude exceeds $62 per barrel

Oil rallied on Monday with the appointment of a new oil minister and Saudi Arabia’s assertion that it would not change its oil policy.

Markets are looking ahead to this week’s OPEC+ committee meeting in Abu Dhabi, which will also monitor compliance with output cuts.

Prices rose for a fourth day, also supported by comments from the UAE’s energy minister that OPEC producers and allies are committed to balancing the crude market.

Brent crude rose 61 cents, or 1%, to $62.15 a barrel, while US West Texas Intermediate crude rose 65 cents, or 1.2%, to $57.17 a barrel.

OPEC and non-OPEC producers are committed to balancing the oil market, UAE energy and industry minister, Suhail Al-Mazroui said on Sunday.