Low oil prices ‘not Saudi Arabia's battle’

Updated 24 April 2016

Low oil prices ‘not Saudi Arabia's battle’

RIYADH: The Kingdom will cap its oil market share at about 10.3 mbd to 10.4 mbd if producers agree to the freeze, Deputy Crown Prince Mohammed bin Salman said during an interview with Bloomberg at King Salman’s private farm in Diriyah on Thursday.

Bloomberg released the interview on Saturday, a day before a widely anticipated OPEC meeting in Doha.
“If all major producers don’t freeze production, we will not freeze production,” said the deputy crown prince, who has emerged as Saudi Arabia’s leading economic force. “If we don’t freeze, then we will sell at any opportunity we get.”
At least 15 nations, including Saudi Arabia and Russia, the two largest crude producers, will gather in Doha on April 17 to discuss freezing output to stabilize an oversupplied market.
He said Saudi Arabia’s commitment to a production cap would depend on Iran’s participation. Iran’s oil minister has dismissed the prospect of joining the deal as “ridiculous” for now.
“If prices went up to $60 or $70, that would be a strong factor to push forward the wheel of development,” he said. “But this battle is not my battle. It’s the battle of others who are suffering from low oil prices.”
The deputy crown prince also said that Saudi Arabia isn’t concerned because “we have our own programs that don’t need high oil prices.”
Still, he reiterated that OPEC will gain support once all members reach a collective decision.
A Russian official has said it was possible to reach a deal in Doha to freeze oil output regardless of Iran, whose crude shipments have risen by more than 600,000 barrels a day this month, according to Bloomberg.
Brent crude settled at $43.10 a barrel Friday in London, having rebounded by more than 50 percent from a 12-year low in January.
The Doha meeting follows a meeting in February between Saudi Arabia, Qatar, Russia and Venezuela in which the quartet tentatively agreed to cap their production at January’s level.
The Public Investment Fund is aimed at helping reduce the Kingdom’s dependency on oil. To achieve this, the fund is considering foreign opportunities and will seek a variety of investments. “So within 20 years, we will be an economy or state that doesn’t depend mainly on oil,” he said.
Earlier this month, the deputy crown prince announced plans to dedicate a $2 trillion fund for a post-oil economy in a separate interview with Bloomberg.


Condemnation of attacks on Saudi Aramco oil plants continue

Updated 17 September 2019

Condemnation of attacks on Saudi Aramco oil plants continue

  • Bahraini King calls Saudi leadership

RIYADH: Condemnations of Saturday’s attack on Saudi Aramco oil installations continued on Monday, as the US pointed out Iran as the likely culprit behind the drone strikes that have dramatically escalated tensions in the region and triggered a record leap in global oil prices.

King Salman and Crown Prince Mohammed bin Salman both received calls from the King Hamad bin Isa Al-Khalifa of Bahrain to condemn the attacks at Saudi oil facilities in Abqaiq and Khurais.

US Secretary of Defense Mark Esper called the crown prince, who is also the defense minister, to affirm his country's full support for the Kingdom.

British Foreign Secretary Dominic Raab said, “We will work with international partners to forge the widest and most effective response,” with a statement from his ministry saying the “UK remains committed to supporting the security of Saudi Arabia.”

India also slammed the attacks and reiterated the country’s “rejection of terrorism in all its forms and manifestations,” a foreign ministry spokesman said.

Official Spokesperson of the UN Secretary General Stephane Dujarric said in a statement that the Secretary General condemns Saturday's attacks on two Aramco oil plants.

The German Foreign Ministry spokeswoman said, “Such an attack on civilian and vital infrastructure in the Kingdom of Saudi Arabia is not justified”.

— with SPA