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Salman Becomes Saudi Arabia’s Ruler After Death of King Abdullah

Salman Bin Abdulaziz Al Saud ascended to the throne of Saudi Arabia after the death of his half-brother King Abdullah, taking the helm of the biggest Arab economy amid political turmoil in the Middle East and tumbling oil prices. King Abdullah, who was born in 1924, died at 1 a.m. in Riyadh . The royal court said Salman, 79, was named king and Prince Muqrin, 69, another half-brother, has been chosen as Crown Prince. Oil prices surged after the announcement. Salman was named as crown prince in 2012 and takes over as the world’s top oil exporter faces a growing threat of militant attacks at home after joining the U.S.-led military coalition against Islamic State in Syria. Regional rival Iran and its Shiite allies are gaining influence, while plunging oil prices are curbing Saudi Arabia’s capacity to invest. “King Abdullah made every effort to make sure the transition would […]

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Saudi Arabia’s New King Probably Will Not Change Current Oil Policy

King Salman, Saudi Arabia’s new ruler, probably will stick to the oil policy of his predecessor, the late King Abdullah , maintaining production levels to preserve market share even at the cost of depressing prices. A key indicator will be whether Salman, 79, retains the oil minister, Ali al-Naimi , who has driven decision-making since 1995. Naimi, who turns 80 this year, has said he’d like to devote more time to his other job, chairman of the science and technology university named after the late sovereign. With production of 9.5 million barrels a day and exports of 7 million, Saudi Arabia accounts for more than a 10th of global supply and a fifth of crude sold internationally. The kingdom’s refusal to surrender market share to rising U.S. output has contributed to the worst slump in prices since the global credit crisis of 2008. “The Saudi leadership has already taken […]

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Former Saudi oil boss says it can cope with low price

Oil well at sunset Saudi Arabia can cope with low oil prices for "at least eight years", Saudi Arabia’s minister of petroleum’s former senior adviser has told the BBC. Mohammed al-Sabban said the country’s policy was to defend its current market share by enduring low prices. "You need to allow prices to go as low as possible in order to see those marginal producers move out of the market," he said. Mr al-Sabban advised the ministry for 27 years, leaving last year. Saudi Arabia, the largest producer within the Opec oil producers’ cartel, has repeatedly said that it will not cut output to try to boost the oil price. Mr al-Sabban said Saudi Arabia’s "huge financial reserves" would enable it to cope with the low oil price. The country is now in the process of cutting government spending. Without these cuts, Mr al-Sabban said, Saudi Arabia could not cope […]

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Saudis Kept Oil Exports at 7-Month High as OPEC Met

Saudi Arabia ’s oil exports rose to a seven-month high in November when it led OPEC to keep production unchanged as the largest crude shipper fought to keep market share with output rising from the U.S. to Russia. Saudi Arabia’s oil exports rose to 7.3 million barrels a day from 6.9 million barrels in October, according to data yesterday on the website of the Joint Organisations Data Initiative. Crude stockpiles at the end of the month stood at 305.8 million barrels, the highest level since at least January 2002, figures on the group’s website showed. Saudi Arabia dropped its official selling prices in Asia for November sales to gain market share in the fastest-growing region for petroleum demand while it helped domestic refiners to be profitable. Brent crude futures have dropped about 35 percent since the Organization of Petroleum Exporting Countries unexpectedly maintained its production target of 30 million […]

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Iran President Says Oil-Price Drop to Hurt Saudi Arabia, Kuwait

Oil’s price slump may hurt Saudi Arabia and Kuwait more than Iran, which depends less on crude exports than the other two nations, Iranian President Hassan Rouhani said. Countries responsible for the drop in oil prices will “regret it,” Rouhani said in an address in Bushehr province, without identifying them. “If Iran suffers from declining oil prices, know that other oil-producing countries such as Kuwait and Saudi Arabia will suffer more than Iran,” Rouhani said. Saudi Arabia, the world’s largest crude exporter, and neighboring Kuwait opposed Iran’s unsuccessful effort to persuade the Organization of Petroleum Exporting Countries to cut output at their Nov. 27 meeting. Iran ’s crude exports have been curbed by international sanctions imposed because of the country’s nuclear program. It produced 2.77 million barrels a day of oil in December, down from an average of 3.58 million in 2011, according to data compiled by Bloomberg. Oil […]

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Saudi Arabia’s Cure for Shale Could Entail Shock Therapy

ENLARGE Workers use machinery to move drill sections near the Bazhenov shale formation in Salym, Russia. Bloomberg News In a price war, what counts is your ability to dish out pain and withstand it. Unfortunately for those counting on a rapid rebound in oil prices, Saudi Arabia’s capacity looks ample on both fronts. Leaving aside geopolitical considerations, Saudi Arabia’s apparent unwillingness to cut production to shore up oil prices reflects rational market strategy. With triple-digit oil having unleashed the genies of shale and demand conservation, artificially supporting prices would simply curb demand and shrink Saudi Arabia’s market share further. Letting the price fall, while painful, at least plays to its key strength: low per-barrel production costs. For many oil-exporting countries, though, the more important price is the one it takes to cover swollen public budgets. In the wake of the Arab Spring, this isn’t just an economic consideration. So […]

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Riyadh holds to oil line, prices drop further

Saudi King Abdullah signals kingdom is keeping to its stance on defending oil market position. UPI/Roger L. Wollenberg NEW YORK, Jan. 6 (UPI) — Word that OPEC kingpin Saudi Arabia would defend its economic interests sent an already battered oil market into a tailspin during the Tuesday session. Crude oil prices suffered major losses Monday , with the price for the U.S. benchmark, West Texas Intermediate, and Brent, the global benchmark, reaching five-year lows. Oil prices are about 50 percent lower than they were in June 2014. Prices have declined dramatically since late November when members of the Organization of Petroleum Exporting Countries opted to keep production steady despite tough market conditions. Saudi King Abdullah in a speech read by Crown Prince Salman bin Abdulaziz suggested the kingdom was staying the course even with oil prices off about 25 percent since the OPEC meeting in November. "The kingdom will […]

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Saudis Report Deadly Border Clash With Infiltrators From Iraq

BEIRUT, Lebanon — Four heavily armed men from Iraq attacked a Saudi Arabia border patrol early Monday, firing automatic weapons and detonating suicide belts in a confrontation that left three guards and all the assailants dead, Saudi officials said. The early morning clash, which the Saudis described as an attempted infiltration near an isolated patch of the Saudi-Iraq frontier, was one of the deadliest episodes of border violence for Saudi Arabia.

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Saudi Arabia Raises Price of Main Oil Grade for Asian Buyers

Saudi Arabia raised the cost of its oil sales to Asia in February, prompting speculation the world’s biggest exporter is retreating from using record price discounts to defend market share. Saudi Arabian Oil Co. will sell its Arab Light grade for $1.40 a barrel less than a regional average next month, the company said yesterday in a statement. That’s a narrowing from January, when the discount was $2, the biggest in at least 14 years. It decreased 11 prices globally and increased six. Brent oil fell 5.9 percent yesterday. Oil prices collapsed 32 percent since the Organization of Petroleum Exporting Countries decided to maintain its output target on Nov. 27, amid signs Saudi Arabia and other members are determined to let North American shale drillers and other producers share the burden of reducing an oversupply. When Aramco lowered prices for November it prompted speculation the nation was seeking to […]

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Michael Lynch: King Abdallah’s Illness, Political Change And The Oil Market

Michael Lynch: King Abdallah’s Illness, Political Change And The Oil Market thumbnail With King Abdallah of Saudi Arabia in serious condition, oil market participants are undoubtedly nervous that this could portend change and even upheaval in Saudi Arabia. Concern that his death could lead to a coup attempt or unrest in the Shi’ite population will no doubt be voiced, but is also likely to prove overblown. The overthrow of the Shah of Iran in 1979 came as a great surprise to most pundits. Indeed, as street demonstrations were growing more violent, a group of European bankers visited to lend more money to the Iranian government, dismissing the protests as nothing the Shah couldn’t handle. Among the more shocking revelations, it came to be known that the CIA station didn’t even have a farsi-speaking agent. The US government was so close to the Shah that it avoided doing anything that […]

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