Saudi Arabia wants to enrich uranium for nuclear power, says energy minister

United States Oil rises as Saudi Arabia signals OPEC cuts to continue under new energy minister

Saudi Arabia's new energy minister, Prince Abdulaziz bin Salman, said Monday that oil production cuts would benefit all exporting nations, in an indication he will support further reductions to address an oversupplied market and sagging prices.

Saudi Arabia's new energy minister Prince Abdulaziz bin Salman has assured India that his country will remain a reliable supplier to the world's third-largest energy consumer and is committed to investing in the country.

To sustain its budget and fund the so-called Vision 2030 plan, the kingdom needs crude oil selling at roughly $80 a barrel. - Saudi King Salman on yesterday promoted one of his sons to the pivotal role of energy minister, strengthening his family's grip on the levers of power from oil to finance and defence.

But in the past efforts to lift prices have routinely backfired in the medium term (18-36 months) by encouraging competing supplies and limiting consumption through greater fuel efficiency, conservation and substitution.

Iran will not negotiate with the United States while sanctions on Tehran are still enforced by Washington, Rouhani told his French counterpart Emmanuel Macron in a phone call on Wednesday, Iranian state media reported.

Vision 2030, which the crown prince unveiled in April 2016, aims to develop public-service sectors such as health, education, infrastructure, recreation and tourism, and to steer the Saudi economy away from its dependence on oil and gas, which now accounts for about half of its gross domestic product.

Saudi energy ministers have all learned the limits to their power, usually the hard way, when they tried and failed to prop prices up. We are looking for crude oil supply to fall by 3 million barrels.

In the most recent period, foreign reserves fell by a total of nearly $14 billion in June and July, as lower prices hit export earnings, after increasing by $32 billion over the previous 20 months.


"Some people will say this is a normal situation, but if you look at where prices are, Saudi Arabia is not satisfied with US$60-a-barrel oil", he said.

The prince's unparalleled diplomatic network may help soothe relationships frayed by Al-Falih, who often seemed impatient with OPEC members unable or unwilling to contribute meaningful oil production cuts. That has spooked nonproliferation experts, who warn such technology could allow Saudi Arabia to pursue a nuclear weapon amid heightened tensions between Iran and the us over Tehran's program.

The demand for OPEC crude will average 29.40 million bpd next year, OPEC said, down 1.2 million bpd from this year. The oil carter has been cutting production in an attempt to ease a global oil glut that has pressured crude prices. As well as being responsible for oil production policy, Al-Falih was chairman of state oil company Aramco and led planning for its IPO.

But the style of Saudi Arabia's oil-market management is likely to be different.

Prince Abdulaziz is a known figure among OPEC members and industry insiders.

The appointment of Prince Abdulaziz bin Salman as the new energy minister mirrors the ascent of his half-brother Crown Prince Mohammed bin Salman, the de facto ruler.

Al-Falih's biggest achievement of his three-year term was managing OPEC's agreement with Russian Federation, which saw the world's No. 2 exporter agree to formal curbs on production for the first time as the global oil market adjusted to a flood of American shale oil.

Related:

Comments

Latest news

Ashes 2019: Joe Root says England must build towards Ashes in Australia
Australia will be looking to cap off the Ashes tour with a win after a successfully retaining the Ashes in Manchester. Paine has now revealed Australia Prime Minister Scott Morrison had a message for the team ahead of the fifth Test.

Tesla claims one track record, plans to go for another
According to Musk , the car's already there, but there won't be any record-breaking attempts this week as further tune-ups are necessary.

Jets sign kicker Sam Ficken to replace ineffective Kaare Vedvik
The Jets signed him after staging a five-kicker tryout Tuesday morning. Next up on the Jets' constantly spinning kicking carousel: Sam Ficken.

Formula One legend Schumacher ‘conscious’ after stem-cell treatment in Paris
"Yes, I can assure you that he is conscious", the French daily quoted a nurse working at the Georges Pompidou Hospital. Since September 2014, Schumacher has been receiving treatment at home.

Screening can catch prostate cancer early
Older men and those with a family history (passed from parent to child) are at greater risk, as are African-American men. If cancer is suspected and a biopsy is recommended, men can now take advantage of MRI prostate screenings.

Other news