Changes included replacing the high-ranking governor of the Saudi central bank and creating new departments like the Commerce and Investment Ministry.
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Saudi Arabia is likely to continue its policy of maintaining high crude production, which keeps oil prices from rebounding until high-cost producers like US shale frackers curtail output, Kilduff said.
Brent had climbed as high as $46.48 a barrel in the wake of the continuing Canadian wildfire in the country’s oil sands region, which has hit more than a million barrels of daily production.
Khalid al-Falih, the new oil minister, is well known in the world of oil and he is confident that the Kingdom is sufficiently prepared to fight for Saudi’s market share. However, Saudi Arabia came too close to freezing its production at January levels, but failed to come to terms with Venezuela, Russia, and other countries.
Baker also criticized Obama’s foreign policy, saying Saudi Arabia does not “feel like we have their back anymore” after the nuclear deal with Iran, and said the USA should have been “firmer” with Russian Federation after it invaded Crimea in 2014.
On Saturday, the Saudi monarch sacked long-serving Oil Minister Ali al-Naimi and restructured a number of ministries in a move that sparked concern across world oil markets.
Crude oil prices moved up sharply in overnight trading, but pulled back by the start of trading in NY. As was evident in the recent Doha meetings, Saudi Arabia’s stance on only accepting a collective oil production freeze went beyond Al-Naimi.
Although Saudi is trying to wean itself off its dependence on oil, analysts believe Salman is waging war with Iran as Tehran attempts to boost production after the lifting of sanctions. After almost 21-years at the post and, by his own description, seven decades around the oil industry, he could move the market with a single cryptic remark.
According to Platts, Saudi Arabia maintained output at 10.2 million barrels per day for the third straight month in March.
Al-Naimi’s departure is further evidence that 30-year-old prince Mohammed bin-Salman, now Saudi Arabia’s de facto CEO, is not wasting any time with his plans to diversify the Saudi economy.
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An attempt to curb global output was foiled last month when Saudi Arabia refused to take part because geopolitical rival Iran wasn’t involved.
