Oil rises as Saudi signals OPEC cuts will continue under new minister
Oil rose on Monday on expectations that Saudi Arabia, the world’s largest oil exporter, will continue to support output cuts by OPEC and other producers to prop up prices under new Energy Minister Prince Abdulaziz bin Salman, CNBC reports.
Prices climbed for a fourth day and were also supported by comments from the United Arab Emirates’ energy minister that OPEC and its allies are committed to balancing the crude market.
Global benchmark Brent was up 61 cents, or 1%, at $62.15 a barrel by 0649 GMT, while U.S. West Texas Intermediate was up 65 cents, or 1.2%, at $57.17 a barrel.
Salman, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries, was named minister on Sunday, replacing Khalid al-Falih. He is the son of Saudi King Salman. It is the first time the energy portfolio has been handed to a member of the royal family.
He helped to negotiate the current global agreement on supply cuts between OPEC and non-OPEC countries including Russia, a group known as OPEC+.
A Saudi official said on Sunday there would be no shift in Saudi and OPEC policy.
“The change at the top doesn’t necessarily mean a shift in policy as much as it’s being viewed as a move to improve relations within OPEC and with non-OPEC producers in the wake of the latest Russian compliance fissures,” said Stephen Innes, Asia Pacific market strategist at Axi Trader.