Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » World
2-min read

Saudi King's Son Replaces Energy Minister in Major Rejig as OPEC Kingpin Reels from Low Oil Prices

The appointment of Prince Abdulaziz bin Salman, half-brother to de facto ruler Crown Prince Mohammed bin Salman, marks the first time a royal family member has been put in charge of the all-important energy ministry.

PTI

Updated:September 8, 2019, 7:02 PM IST
facebookTwitterskypewhatsapp
Saudi King's Son Replaces Energy Minister in Major Rejig as OPEC Kingpin Reels from Low Oil Prices
File photo of Saudi King Salman. (Reuters)
Loading...

Riyadh: Saudi Arabia's King Salman on Sunday replaced the energy minister with one of his sons, state media said, in a major shakeup as the OPEC kingpin reels from low oil prices.

The appointment of Prince Abdulaziz bin Salman, half-brother to de facto ruler Crown Prince Mohammed bin Salman, marks the first time a royal family member has been put in charge of the all-important energy ministry.

He replaces veteran official Khalid al-Falih as the world's top crude exporter accelerates preparations for a much-anticipated stock listing of state-owned oil giant Aramco, expected to be the world's biggest.

"Khalid al-Falih has been removed from his position," the official Saudi Press Agency said, citing a royal decree.

"His royal highness Prince Abdulaziz bin Salman is appointed minister of energy."

Since his appointment as oil minister in 2016, Falih has been the face of Saudi energy policy but the veteran technocrat had seen his portfolio shrink in recent weeks.

His ouster comes just days after he was removed as chairman of Aramco and replaced by Yasir al-Rumayyan, governor of the kingdom's vast Public Investment Fund.

Falih's powers were diminished last month when the world's top oil exporter announced the creation of a new ministry of industry and mineral resources, separating it from his energy ministry.

It was widely speculated that top officials were dissatisfied with Falih as oil prices sagged ahead of the Aramco IPO.

Economic uncertainty fanned, by an ongoing US-China trade war, has dragged Brent crude prices to around USD 60 a barrel in recent weeks, well below the USD 85 mark that experts say is needed to balance the Saudi budget.

The OPEC petroleum exporters' cartel and key non-OPEC members are scheduled to meet in Abu Dhabi on Thursday to review their strategy on limiting production to halt a slide in prices.

Cartel kingpin Saudi Arabia, which pumps around a third of OPEC's oil, has resorted to massive production cuts to lift prices since the market crash in mid-2014.

It was unclear whether there would be a change in policy under Prince Abdulaziz, who joined the oil ministry in the 1980s and has held a variety of senior roles.

"Prince Abdulaziz is a very seasoned veteran of Saudi and OPEC policy making," Bob McNally, president of Rapidan Energy Group, told Bloomberg News.

"He won't have a learning curve. I don't expect any big rupture in current Saudi oil policy."

His appointment further concentrates power within the king's family. His other son, Prince Mohammed bin Salman, controls the major levers of power and is heir to the Arab world's most powerful throne.

A younger son, Prince Khalid bin Salman, is deputy defence minister.

Aramco is stepping up efforts to float around five per cent of the company, seeking to raise up to USD 100 billion based on a USD 2 trillion valuation of the whole firm.

But low oil prices have left some investors in doubt that Aramco is really worth that much.

Failure to reach a USD 2 trillion valuation as desired by Saudi rulers is widely considered the reason the IPO, earlier scheduled for 2018, was delayed.

The planned IPO forms the cornerstone of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the Saudi economy off its reliance on oil.

Saudi Aramco has not announced where the listing will be held, but London, New York and Hong Kong have all vied for a slice of the much-touted IPO.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results