Russia's Novak, Saudi's Prince Abdulaziz did not discuss oil price dynamics

Russia's Novak, Saudi's Prince Abdulaziz did not discuss oil price dynamics

Limiting the downside to oil prices, Iraqi Oil Minister Thamer Ghadhban said OPEC would discuss whether to deepen output cuts, when ministers meet on Thursday. He said the global economic outlook was expected to improve once a trade dispute between the U.S. and China was resolved. Iran had threatened to storm out and sink a deal on production quotas, accusing the Saudi Oil Minister Khalid Al-Falih of trying to steal market share.

Khalid Al-Falih, the former oil minister and the mastermind of the Opec+ pact, has been dismissed amid ongoing preparations for Saudi Aramco's initial public offering.

Separately, the U.S. Energy Information Administration said domestic gasoline stocks decreased less than expected last week while crude stocks fell to the lowest in almost a year.

Prince Abdulaziz, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), said the pillars of Saudi Arabia's policy would not change and a global deal to cut oil production by 1.2 million barrels per day would be maintained.

Oil prices rose on Monday on his remarks.

The International Energy Agency (IEA) last week lowered its growth forecast for oil demand for 2019 and 2020, blaming the ugly US-China trade dispute which has triggered fears of a global recession.

"We are proceeding with it cautiously. we are experimenting with two nuclear reactors", Prince Abdulaziz bin Salman said, referring to a plan to issue a tender for the kingdom's first two nuclear power reactors.

Prince Abdulaziz bin Salman can be seen embracing his brother, Crown Prince Mohammed bin Salman, after giving his oath at the Red Sea port of Jedda.

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In the most recent period, foreign reserves fell by a total of nearly $14 billion in June and July, as lower prices hit export earnings, after increasing by $32 billion over the previous 20 months.

Saudi Arabia has shouldered the bulk of OPEC+ production cuts, and is pumping about 500,000 barrels a day less than its agreed cap.

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.

Higher prices would boost the value of the state-owned oil giant, Saudi Aramco.

But the style of Saudi Arabia's oil-market management is likely to be different. While the Middle Eastern country is OPEC's second-largest producer, it's also consistently flouted its pledge to reduce output and has actually increased production since the latest round of curbs began in January.

He added that the so-called OPEC+ alliance, which includes non-OPEC producers such as Russian Federation, would be in place for the long term. His other son, Prince Mohammed bin Salman, controls the major levers of power and is heir to the Arab world's most powerful throne.

In order for USA companies to compete for Saudi Arabia's project, Riyadh would normally need to sign an accord on the peaceful use of nuclear technology with Washington, under the United States Atomic Energy Act.

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