Saudi Arabia’s Powerful Oil Minister Ali al-Naimi Is Fired

Saudi Arabia fired long-serving oil minister Ali al-Naimi on Saturday, dismissing one of the industry’s most powerful figures as the country battles with weak oil prices.

Mr. Naimi, who had been the kingdom’s oil minister since 1995, has been a loud voice against lowering Saudi Arabia’s production when prices fall, a departure from its past tactics.

He will be replaced by Khalid al-Falih, chairman of state oil company Saudi Arabian Oil Co., better known as Saudi Aramco.

The royal decree, announced via state media, is part of a wider government reshuffle that includes a restructuring of the oil ministry, which has been renamed the Ministry of Energy, Industry and Mineral Resources.

It comes less than two weeks after Saudi Arabia unveiled an ambitious economic reform program aimed at reducing its dependence on oil revenues.

Oil prices have plummeted since mid-2014 due to a glut of supply, hitting the budgets of oil-dependent countries. In Saudi Arabia, among the world’s largest producers, oil accounted for almost three-quarters of state revenues last year.
WSJ