Environment & Energy | Saturday 28 October, 2017 1:34 am |

The recent statements by Crown Prince Muhammad Bin Salman, deputy premier and minister of defense, have sent oil prices to over $60, the highest in more than two years, agencies said.

 

The Crown Prince statements have cleared the fogginess shrouding the markets, hence restoring confidence. The restoration of a balance in the oil market has raised the status of the Kingdom leadership, proving its success despite the challenges.

 

During the recently held investment conference here, the Crown Prince confirmed that the demand for petroleum is set to increase. Crown Prince Muhammad also provided reassurance on the future of energy, both conventional and renewables.

 

In a statement to Reuters, he said the Kingdom was committed to working with all OPEC and non-OPEC countries.

 

He said that they have achieved a great and historic agreement and the Kingdom would support all that would realize stability of supply and demand. He stressed that they have restored control over all matters.

 

He confirmed the Kingdom readiness to extend the deal on cutting oil production, which has restored balance between supply and demand.

 

The Crown Prince added that the high demand for oil has offset the high production of shale oil.

 

Comments made by the Crown Prince have sent Brent crude to its highest in two years ($59.3 a barrel), Reuters said.

 

Crown Prince Muhammad reassured that the Aramco initial public offering is still on track for its scheduled takeoff in the second half of 2018.

 

Minister of Energy, Industry and Mineral Resources Khalid Al-Falih said earlier this week that “When we get closer to that (five-year average) we will decide how we smoothly exit the current arrangement, maybe go to a different arrangement to keep supply and demand closely balanced so we donat have a return to higher inventories.

 

These comments suggest that the lower production could become something of a norm as long as everyone in OPEC and its external partners agrees.