US crude futures rose 91 cents to $45.57 a barrel by 0910 GMT, up for a fourth day in a row, while Brent crude futures rose 72 cents to $46.02 a barrel.
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Aramco expects global crude oil demand to grow by 1.2 million barrels per day this year, he said, and has seen increasing demand in the United States and India.
Recent headlines around the world have caused a lot of uncertainty in oil markets.
Saudi Aramco chief and new energy minister pledged continuity in the Kingdom’s oil policy.
The change is part of a wider revamping of the government that also saw the electricity ministry discontinued and its activities folded into Al-Falih’s duties, Kallanish Energy reports.
Then, Saudi Arabia – the de-facto leader of OPEC – had initially signaled support for the freeze agreement, only to take a last-minute U-turn following intervention by the increasingly powerful and prominent 30-year old prince Mohammed bin Salman, who insisted that there would be no deal without Iranian co-operation.
Kuwait and Saudi Arabia have still not resumed production from the Khafji field in the offshore zone between the two countries.
Oil prices gave up earlier gains from a huge wildfire in Canada’s oil and gas region to trade lower this afternoon.
USA shale oil output is in decline and production is also falling in Latin America, Asia and Nigeria, eroding a 1-2 million barrels per day supply overhang that pulled down oil prices by 70 percent between 2014 and early 2016. Importantly, Mohammad bin Salman is more focused on ending Saudi’s dependence on hydrocarbons through sweeping reform and maintaining market share versus Iran than he is on pursuing higher oil prices’.
Saudi Arabia is also looking increase its production of natural gas, with plans to almost double its output in 10 years, he said. The new Saudi oil leadership believes the market will dictate the price and that means higher volatility.
“Iran has always been a big competitor for Saudi, even during sanctions as Iran was still exporting over one million barrels a day to Asian countries”.
Talking about the first part of the shipbuilding complex, part of Riyadh’s plans to boost industrial diversification, Nasser said it will be ready by 2018 and will eventually make oil rigs and tankers.
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“The upheaval in the oil patch is a direct result of Saudi oil policy and their refusal to move on price has resulted in current market conditions…the reshuffle confirms that they’re sticking to policy and there will be no short-term let up from Saudi”, he said.
