Saudi Arabia ousts long-serving oil minister Ali Al Naimi sparking fears volatility will return to the oil market
Saudi Arabia’s dismissal of its oil minister yesterday has sparked concerns that fresh volatility is about to hit the market.
The kingdom ousted its long-serving oil minister who was the driver behind Opec's 2014 policy of holding production despite plummeting oil prices.
Ali al-Naimi, who held the post from 1995, has been replaced by Khalid Al Falih, chairman of the Saudi Arabian Oil Company, according to nation's media.
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They cited a royal decree saying the petroleum ministry had been renamed as the ministry of energy, industry and mining. Falih will leave his previous post of health minister, it said.
Ali al-Naimi had pushed for Opec to hold production nearly two years ago despite plummeting oil prices, to price out the emergent US shale gas industry. The policy had courted controversy from some of the smaller producers such as Venezuela.
He was also present at the more recent Doha meeting which failed to produce a widely expected production freeze deal. The talks collapsed after Saudi Arabia objected to regional rival Iran's last minute decision not to attend.
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It had been touted as an attempt to prop up prices that have plummeted from $110 per barrel in mid-2014 to multi-year lows of $27 in January. They've since recovered somewhat and are currently hovering around the $45 mark.
Saudi Arabia recently announced a bold new economic plan, Saudi Vision 2030, enabling it to "live without oil" by 2020, deputy crown prince Mohammed bin Salman said. “The vision is not a dream. It's a reality that will come true.”