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Page added on May 8, 2016
Saudi’s New Oil Boss Vows to Maintain Policy
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 percent since tumbling to a 12-year low in January.
Saudi Arabia could exceed its record output of more than 10.5 million daily barrels 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 million barrels a day 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 a barrel 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 a barrel on Friday in London, a partial recovery from its intraday low of $27.10 a barrel on Jan. 20.
“They’ll continue the policy of relatively high oil production with no freeze and no deals,” Robin Mills, chief executive officer 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 barrels a day this year, while demand is forecast to rise by about 1.2 million barrels daily, 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.”
28 Comments on "Saudi’s New Oil Boss Vows to Maintain Policy"
makati1 on Sun, 8th May 2016 7:14 pm
Actually, they have no choice. It’s produce or die.
Truth Has A Liberal Bias on Sun, 8th May 2016 7:32 pm
The article states that the Saudi record for oil production is 10.5 million barrels a day but according to OPEC MOMR it’s actually 10.235 million barrels a day and that was achieved in June 2015. That was Saudi Arabias peak and they are now producing 10.12 million barrels a day. I have a hunch Saudi can’t increase production. If they don’t increase production this summer during air conditioning season it will be because they can’t. At least for now anyway and possibly ever at all. Saudi is past peak. They peaked in June 2015.
makati1 on Sun, 8th May 2016 7:48 pm
In other news:
http://www.ozarksfirst.com/news/food-insecurity-rise-in-missouri
“SPRINGFIELD, Mo.– Oddly enough, the newly released Missouri Hunger Atlas says hunger isn’t the only household struggle in the Show Me State. Co-author of the publication, Sandy Rikoon says more people. Are suffering from food insecurity, meaning they’re worried about where their next meal will come from.
“The rate of Missouri food insecurity has gone up from 13 or 14% to now, it’s about 16 or 17,”says Rikoon…”
And the beat goes on…
makati1 on Sun, 8th May 2016 7:50 pm
More news about the Appalachians…
http://www.centralkynews.com/amnews/news/local/boyle/study-one-in-six-kentuckians-food-insecure/article_c3594d9c-1227-11e6-9715-a3b300c32166.html
“More than one in six Kentuckians are food insecure, including more than 222,000 children, according to the annual “Map the Meal Gap” study released at the end of April by the Kentucky Association of Food Banks….”
And they think Asia is in trouble…lol
Apneaman on Sun, 8th May 2016 8:35 pm
mak, and the Jesus freaks in Missouri are pulling out all the stops to make sure there are as many mouths to feed as possible by outlawing birth control (choice) in the worst US economy since the great depression after there have already been cuts food stamps an welfare benefits. Good looking out.
Missouri lawmakers pass resolution recognising right to life of unborn child at ‘every stage of biological development’
http://www.christiantoday.com/article/missouri.lawmakers.pass.resolution.recognising.right.to.life.of.unborn.child.at.every.stage.of.biological.development/85573.htm
Davy on Sun, 8th May 2016 8:56 pm
Makati Bill, so what’s new with Missouri and being poor. Nothing new with that or your poor attitude of redundant anti-Americanism.
GregT on Sun, 8th May 2016 9:51 pm
Bill is an American Davy, who has put in far more time as an American than you have. He has opted out of the system and no longer supports it, which is his prerogative. You on the other hand, have opted out of the system, yet you continue to support the system that you have opted out of. Why is that Davy? Does that not constitute a conflict of interest, or are you merely conflicted within yourself?
Anonymous on Sun, 8th May 2016 11:30 pm
Old boss, meet new boss.
Truth Has A Liberal Bias on Mon, 9th May 2016 1:32 am
Given the America is populated by fat lazy selfish retards I’d suggest being antiamerican is a rational and intelligent position. If I pointed to a nation full of fucking idiots and asked ‘hey who’s in favor of those guys?’ I suppose Davy would put up his hand and proclaim ‘my people’. I hope every country with a little payback on its mind kicks ‘merika while its down, which will be soon. Naturally some retard will say ‘they hate our freedom’ but it’s really just blow back like what a bully gets when he can’t get away with throwing his weight around anymore. I hope Chinese military intelligence gets a good asymmetrical warfare plan going and imports copious amounts of heroin. That oughta fuck ya’ll up.
Dredd on Mon, 9th May 2016 5:23 am
Bubba down.
Davy on Mon, 9th May 2016 6:26 am
Nope Greggar, Makati Bill is not an American. He has shown that he is not an American by and through hate. You defending him shows you are part of the same nastiness. Makati Bill has taken the cowardly way out and left. Kind of like what you did Greg flip your $MIL house to a China man engaged in a huge epic money laundering story of the Chinese gutting their people and their country. You who preaches such high morals and complains about the rich are one of the criminal 1% you constantly blame. Some poor China man got beat out of his savings and or pay check because of you.
Both you and Makati live this “greater than thou” life of being driven by the deadly serious passion of envy, resentment, and self-importance. You feel your passions are so important the end justifies the means. This allows you all to be bullies and dispense scorn. These people you hate deserve it is your thinking and since you think you possess special knowledge you believe it is your duty to retribution to anyone who does not think like you. That is a dramatic way to say you guys are assholes who constantly spank people and act like you are special.
You think you are smart enough to determine winner and losers and everything is about winning to you assholes. You know little about me Greggar. I am not a coward like Makati Bill that deserted his family. They guy is obsessed with dying. He routinely blathers about how good his health is and how long he is going to live. Typical old guy with a youth issue. He is old and poor and he is facing a collapse in a very overpopulated country with no family and or support. He could have stayed home and done what real men do and that is support and protect his family. Instead he chose the selfish route of protecting himself.
What is more disgusting about Makati Bill is he now preaches the end of the country where his family is. He could have stayed here to protect them and try to change attitudes and lifestyles. Instead he ran off to a country with a male partner to start a new life. It would be ok if he left because of something horrible and or with nothing remaining but he left and left with spite and hatred. Makati Bill dedicates his day to retribution. Every day is the same morning and night and that is discrediting and blaming together with bragging about himself and his adopted land. What a joke.
I have chosen to stay and protect my family. I have chosen to stay and make an effort where I can to change attitudes and lifestyle. Unlike you that took the money and run and further contribute to the gutting of Hongcouver. I get tired of your pathetic moralizing and being an amateur psychologist. Why can’t you mind your own fucking business Greggar. Is it just because you are an asshole Canadian that thinks he is special. You are not Grggar, you are just another asshole that thinks his shit does not stink. FUCK OFF ASSHOLE.
Davy on Mon, 9th May 2016 6:37 am
Truth is a dumbass, you are a quintessential fucked up Canadian. Greg is bad but you are off the chart over with the other asshole from Hongcouver Apnea dumbass. Someone needs to kick your ass off your high horse and life will soon enough. Montreal is going to crash and burn like everywhere else. There is nothing special about the place. You and your small investment income that you live off of will be nothing. Then how mean will you be when you are starving? What are you going to do when your bullets run out? You routinely spout off how you want to kill Americans when they migrate north from our collapse. You talk about retarded and fat Americans but you fail to acknowledge Canada is full of them. I can picture you as ugly and fat and that is why you criticize Americans because of your own self-confidence issues. Where Canada excels is asshole like you Greg, Anonymous, and apnea the dumbass. You guys are ambassadors for your country and look how well you portray it. I once loved Canada and now I hate the place and it is because of your all.
Davy on Mon, 9th May 2016 6:38 am
I have to spend the morning dealing with dumbass Canadians. What a joke.
JuanP on Mon, 9th May 2016 7:08 am
Davy, Who do you think you are, prick? Do you think you get to determine who gets to be an American, too? What a delusional prick. I am of a mind to become an American just to set you off. You are one arrogant son of a bitch. You are the prototypical full of shit delusional American exceptionalist.
makati1 on Mon, 9th May 2016 7:30 am
GregT, maybe the Redneck wannabee is a schizophrenic and cannot decide who he wants to go out with this morning. The goat or the ewe. LOL I would have thought that he would have noticed that I do not read his bullshit anymore, but do get a reflection of it in your and other’s comments. I’m sure I am not missing anything intelligent there. I do enjoy pulling Boat’s chain once in a while though. It is so easy to do.
Davy on Mon, 9th May 2016 7:32 am
Juan, you are worse than the Canadians because at least they live in their country. You on the other hand are a dumbass 1%er South American who stays here as a resident alien sucking our wealth at the same time you viciously criticize us. You need to go home but you know how bad it is at home so you stay put. WTF, happens to the opulent finca a few years back you were boasting about as your place of refuge? Go back there where you belong asshole. We don’t need extremist here. We have enough problems with home grown terrorist and you are a perfect example of a terrorist in waiting.
Davy on Mon, 9th May 2016 7:37 am
Makati Bill, back in for your evening stroll among 20MIL. Have you seen how screwed up your adopted countries’ elections are? You like to criticize the US election process as a circus but the P’s election process is a circus event too and it looks like an extremist is going to get elected. So much for the club med advert you try to sell daily.
Kenz300 on Mon, 9th May 2016 9:56 am
Saudi subsidies for oil have caused wasteful and increasing volumes of oil and oil products to be used internally. They are finally cutting the subsidies.
They still are using oil for power generation….another missed opportunity……
KSA needs to embrace wind and solar for their power generation or internal use will limit their exports.
The oil producers, oil companies and the auto companies need to get their collective heads out of the sand and realize that the world is changing with or without them. Climate Change is real….. it will impact all of us…
It is time to move away from fossil fuels and embrace alternative energy sources like wind, solar, wave energy, geothermal and second generation biofuels made from algae, cellulose and waste. They need to change their business models and move from being OIL companies to ENERGY companies. The auto industry needs to move from just building compliance vehicles to embracing electric vehicles and start putting development and advertising behind them..
The world is moving to embrace alternative energy sources…….. the fossil fuel companies can transform themselves into “energy” companies or they can die a slow death. As Climate Change impacts more people there will be a bigger backlash against fossil fuels.
GregT on Mon, 9th May 2016 10:27 am
You’re quite the piece of work Davy. The really sad part about it? You don’t appear to have the slightest idea as to why. You make hundreds of millions of decent American citizens look bad Davy. You are the epitome of the ugly American. As ugly as it gets.
Davy on Mon, 9th May 2016 10:39 am
Greg, dumbass, learn to leave people alone. You got this thing about kicking people then wondering why someone spits in your face. FUCK OFF. Is that clear enough. I will avoid personal attacks if you do. If you continue to want to bad mouth me than I am going to spit in your face. You start this.
JuanP on Mon, 9th May 2016 10:43 am
Davy, I don’t see how a 10 hectare farm can be called an opulent finca. My farm is for my retirement and I don’t expect to go back for many years if I can help it. The longer I can delay my moving there the better.
I have never lived off your country in any way. I have brought more money from abroad than I will ever take away. I have made Social Security and Medicare contributions and paid property and income taxes for more than 25 years in your country without ever expecting or taking anything in return. I was also schooled abroad so I have basically never cost a penny to your country. I am no longer even employed in your country or generate any income here in any way, I am only doing volunteering and pro bono work in the USA, mostly as a food grower and educator.
GregT on Mon, 9th May 2016 10:47 am
BillT is an American citizen Davy, regardless of whether that bothers you or not. You don’t make the rules Davy. Thank goodness for that.
Davy on Mon, 9th May 2016 11:03 am
Right, you don’t make the rules so mind your own business. If you want to defend Makati Bill do it without involving me dumbass. He is a big boy he can defend himself. You F-wacks start shit then you get all upset because you get slapped in the face. Give it a rest and leave me alone. Go worry about the Canadian fire season or something. FUCK OFF
Davy on Mon, 9th May 2016 11:09 am
Juan, I could give a shit about your finca nor you twisted logic on being a resident alien in a country you hate. You are a leach that needs to go home. It is you that started this conversation and involved me so I am going to tell you what I told your gangbang buddy Greg T……FUCK OFF
When are you extremist assholes going to learn how to treat people? You don’t own this board so say what you need to say and I will say what I am saying. We can do that without personal attacks but you F-Wacks are incapable of it.
GregT on Mon, 9th May 2016 11:16 am
You haven’t slapped anybody in the face but yourself Davy. Your emotional outbreaks have no bearing on reality. Get a handle on your anger. It tends to manifest itself on one’s own physical and phycological wellbeing.
Davy on Mon, 9th May 2016 11:32 am
Greg, quit being a cunt and drop it. I won’t talk to you and you don’t talk to me. Everyone will be happy especially the board that is tired of the childish behavior. I know I will be happy not to have a condescending Canadian asshole trying to tell me my mental health status and so forth. You have the issues Greg and it is call an inflated ego and an obsession with getting into other people’s business. FUCK OFF. Is that clear?
JuanP on Mon, 9th May 2016 3:36 pm
Davy, Go fuck a goat, prick! You are a disgrace of a human being! You shame your family, your country, and the species. Now go release yourself, you obviously need it.
Davy on Mon, 9th May 2016 3:42 pm
The feeling is mutual palooka.