Saudi Arabia on Monday named the head of its sovereign wealth fund as chairman of oil giant Aramco, replacing Energy Minister Khalid al-Falih as the state-owned company prepares for a much-anticipated initial public offering (IPO).

"I congratulate... Yasir al-Rumayyan, governor of the Public Investment Fund, on his appointment as chairman of the board of directors of Saudi Aramco, which is an important step to prepare the company for the public offering," Falih said on Twitter.

Rumayyan, already an Aramco board member, is the head of the vast Saudi sovereign wealth fund that is spearheading an ambitious plan to diversify the kingdom's oil-reliant economy.

The news comes after Falih, who has long headed both Aramco and the energy ministry, has seen his portfolio shrink as the kingdom reels from low oil prices.

Saudi Arabia on Friday announced the creation of a new ministry of industry and mineral resources, separating it from the energy ministry as it steps up efforts to boost non-oil revenue.

"All this shows that in Saudi Arabia there has been some dissatisfaction at the highest levels on how things have been going," Olivier Jakob, from the consultancy Petromatrix, told Bloomberg News.

"Falih has not really fully delivered on oil prices. There's speculation that prices and the IPO are linked and they need higher prices to get the valuation they want for the IPO."

Aramco has said it plans to float around five per cent of the state-owned company in 2020 or 2021, in what could potentially be the world's biggest stock sale.

It aims to raise up to $100 billion based on a $2 trillion valuation of the company, but amid low oil prices, investors have debated whether Aramco is really worth that much.

Failure to reach a $2 trillion valuation as desired by Saudi rulers is widely considered the reason the IPO, earlier scheduled for 2018, has been delayed.

Earlier this month, Aramco said its first-half net income for 2019 slipped nearly 12 per cent to $46.9 billion on lower crude prices.

It was the first time the company has published half-year financial results and comes after Aramco opened its secretive accounts for the first time in April, revealing itself to be the world's most profitable company.

The planned IPO forms the cornerstone of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the Saudi economy off its reliance on oil.

Saudi Aramco has not announced where the listing will be held, but London, New York and Hong Kong have all vied for a slice of the much-touted IPO.

The oil giant is considering a two-stage IPO, with a domestic debut and a subsequent international listing possibly in Tokyo, the Wall Street Journal reported last week.

Saudi Arabia on Monday named the head of its sovereign wealth fund as chairman of oil giant Aramco, replacing Energy Minister Khalid al-Falih as the state-owned company prepares for a much-anticipated initial public offering (IPO).

Saudi Arabia on Monday named the head of its sovereign wealth fund as chairman of oil giant Aramco, replacing Energy Minister Khalid al-Falih as the state-owned company prepares for a much-anticipated initial public offering (IPO). "I congratulate... Yasir al-Rumayyan, governor of the Public Investment Fund, on his appointment as chairman of the board of directors of Saudi Aramco, which is an important step to prepare the company for the public offering," Falih said on Twitter. Rumayyan, already an Aramco board member, is the head of the vast Saudi sovereign wealth fund that is spearheading an ambitious plan to diversify the kingdom's oil-reliant economy. The news comes after Falih, who has long headed both Aramco and the energy ministry, has seen his portfolio shrink as the kingdom reels from low oil prices. Saudi Arabia on Friday announced the creation of a new ministry of industry and mineral resources, separating it from the energy ministry as it steps up efforts to boost non-oil revenue. "All this shows that in Saudi Arabia there has been some dissatisfaction at the highest levels on how things have been going," Olivier Jakob, from the consultancy Petromatrix, told Bloomberg News. "Falih has not really fully delivered on oil prices. There's speculation that prices and the IPO are linked and they need higher prices to get the valuation they want for the IPO." Aramco has said it plans to float around five per cent of the state-owned company in 2020 or 2021, in what could potentially be the world's biggest stock sale. It aims to raise up to $100 billion based on a $2 trillion valuation of the company, but amid low oil prices, investors have debated whether Aramco is really worth that much. Failure to reach a $2 trillion valuation as desired by Saudi rulers is widely considered the reason the IPO, earlier scheduled for 2018, has been delayed. Earlier this month, Aramco said its first-half net income for 2019 slipped nearly 12 per cent to $46.9 billion on lower crude prices. It was the first time the company has published half-year financial results and comes after Aramco opened its secretive accounts for the first time in April, revealing itself to be the world's most profitable company. The planned IPO forms the cornerstone of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the Saudi economy off its reliance on oil. Saudi Aramco has not announced where the listing will be held, but London, New York and Hong Kong have all vied for a slice of the much-touted IPO. The oil giant is considering a two-stage IPO, with a domestic debut and a subsequent international listing possibly in Tokyo, the Wall Street Journal reported last week.

Saudi Arabia replaces Aramco chairman ahead of potential IPO

Saudi&nbsp;energy&nbsp;minister&nbsp;Khalid Al-Falih&nbsp;discussed<a href="https://www.wionews.com/world/-saudi-says-ready-to-pump-more-oil-to-balance-market-148765/amp">&nbsp;oil&nbsp;markets</a>&nbsp;with his&nbsp;Russian&nbsp;counterpart&nbsp;and stressed that&nbsp;<a href="https://www.wionews.com/world/saudi-arabia-to-allow-women-to-travel-abroad-without-male-guardian-approval-240033">Saudi&nbsp;Arabia</a> would continue to comply with production cuts until the&nbsp;end of Q1 2020,&nbsp;he&nbsp;said in a tweet on Saturday.

"We confirm that we will continue to hold such meetings and talks between our two countries to ensure further progress, partnership, investment development, and mutual trade," Al-Falih added during the&nbsp;meeting.

Saudi energy minister Khalid Al-Falih discussed oil markets with his Russian counterpart and stressed that Saudi Arabia would continue to comply with production cuts until the end of Q1 2020, he said in a tweet on Saturday.

Saudi energy minister Khalid Al-Falih discussed oil markets with his Russian counterpart and stressed that Saudi Arabia would continue to comply with production cuts until the end of Q1 2020, he said in a tweet on Saturday. "We confirm that we will continue to hold such meetings and talks between our two countries to ensure further progress, partnership, investment development, and mutual trade," Al-Falih added during the meeting.

Saudi energy minister says he discussed oil markets with Russian counterpart

Saudi Arabia and the UAE on Saturday called for decisive action to protect energy supplies amid a tense US-Iran standoff as two tankers attacked in a vital Gulf shipping channel headed to port.

The United Arab Emirates' Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan called on world powers "to secure international navigation and access to energy", a plea echoed by regional ally Saudi Arabia after the incident sent crude prices soaring.

The two tankers -- the Japanese-owned Kokuka Courageous that was carrying highly flammable methanol when it was rocked by explosions and the Norwegian Front Altair -- were heading to port on Saturday, owners and shipping officials said.

The US military on Friday released grainy footage it said showed an Iranian patrol boat removing an "unexploded limpet mine" from one of the tankers.

US President Donald Trump has said the twin attack in the Gulf of Oman on Thursday had Iran "written all over it", rejecting Tehran's vehement denial.

Iran has repeatedly threatened to block the Hormuz Strait, a narrow seaway vital to the world's oil supplies, in the event of a conflict with the US.&nbsp;

The UAE's Sheikh Abdullah, whose country is bitterly opposed to Iranian influence in the region, called Saturday for a de-escalation of tensions.

"We remain hopeful in attaining a broader framework for cooperation with Iran," he said at a summit in Bulgaria.

Meanwhile, Saudi Arabia's Energy Minister Khalid al-Falih called for a "swift and decisive" response to threats against energy supplies after Thursday's "terrorist acts".

Gulf Cooperation Council secretary general Abdullatif al-Zayani also called the attack a "direct threat" to energy supplies, calling on world powers to protect international shipping lanes and hold the perpetrators accountable.

Vessels head to port

The Japanese tanker's Tokyo-based operator Kokuka confirmed Saturday the vessel was heading to port in the UAE.

"We still don't know if the tanker goes to Khor Fakkan or Fujairah as they are very close," said a spokesman, referring to two Emirati ports on the Gulf of Oman.&nbsp;

Maritime experts would then seek to transfer the highly flammable cargo to shore, according to an unnamed official quoted by Japanese state media.

"From a viewpoint of global energy security, it is necessary for the international community to jointly deal with the act," said Japanese trade minister Hiroshige Seko at a G20 energy and environment meeting in Japan on Saturday.

The other ship, the Norwegian-operated Front Altair, has left Iran's territorial waters, multiple sources said Saturday.

The ship is "heading toward the Fujairah-Khor Fakkan area in the United Arab Emirates", head of ports for Iran's southern province of Hormozgan told the semi-official news agency ISNA.

The tanker "has left Iran's territorial waters," he said, adding that it was being towed and sprayed with water to cool the hull.

Frontline Management, the Norwegian company which owns the ship, confirmed it had left Iranian waters and said "the 23 crew members... remain safe and well, with plans being made for their repatriation soonest".&nbsp;

'Allegations against Iran'

Iranian Foreign Minister Mohammad Javad Zarif tweeted that the US had "immediately jumped to make allegations against Iran without a shred of factual or circumstantial evidence."

The United States has also accused Iran over May 12 sabotage attacks on four tankers anchored in the Gulf of Oman off Fujairah.

UN Secretary-General Antonio Guterres called for an independent investigation.

"It's very important to know the truth (and) that responsibilities are clarified," he told reporters at UN headquarters in New York.

"Obviously that can only be done if there is an independent entity that verifies those facts."

The oil tankers hit Thursday morning were 10 nautical miles apart and heading for Asia when they were struck by explosions after passing through the Strait of Hormuz, some 25 nautical miles off Iran's southern coast.

The Front Altair was carrying naphtha, a refined petroleum product, when it was hit by three explosions, according to Norwegian officials.

Blocking the Hormuz Strait would be a relatively low-tech, high-impact countermeasure Iran could take against any attack by the United States, and would severely disrupt global oil supplies.

But Trump played down the threat.

"It's not going to be closed, it's not going to be closed for long and they know it. They've been told in very strong terms," he said on Friday, referring to Iran.

Saudi Arabia and the UAE on Saturday called for decisive action to protect energy supplies amid a tense US-Iran standoff as two tankers attacked in a vital Gulf shipping channel headed to port.

Saudi Arabia and the UAE on Saturday called for decisive action to protect energy supplies amid a tense US-Iran standoff as two tankers attacked in a vital Gulf shipping channel headed to port. The United Arab Emirates' Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan called on world powers "to secure international navigation and access to energy", a plea echoed by regional ally Saudi Arabia after the incident sent crude prices soaring. The two tankers -- the Japanese-owned Kokuka Courageous that was carrying highly flammable methanol when it was rocked by explosions and the Norwegian Front Altair -- were heading to port on Saturday, owners and shipping officials said. The US military on Friday released grainy footage it said showed an Iranian patrol boat removing an "unexploded limpet mine" from one of the tankers. US President Donald Trump has said the twin attack in the Gulf of Oman on Thursday had Iran "written all over it", rejecting Tehran's vehement denial. Iran has repeatedly threatened to block the Hormuz Strait, a narrow seaway vital to the world's oil supplies, in the event of a conflict with the US. The UAE's Sheikh Abdullah, whose country is bitterly opposed to Iranian influence in the region, called Saturday for a de-escalation of tensions. "We remain hopeful in attaining a broader framework for cooperation with Iran," he said at a summit in Bulgaria. Meanwhile, Saudi Arabia's Energy Minister Khalid al-Falih called for a "swift and decisive" response to threats against energy supplies after Thursday's "terrorist acts". Gulf Cooperation Council secretary general Abdullatif al-Zayani also called the attack a "direct threat" to energy supplies, calling on world powers to protect international shipping lanes and hold the perpetrators accountable. Vessels head to port The Japanese tanker's Tokyo-based operator Kokuka confirmed Saturday the vessel was heading to port in the UAE. "We still don't know if the tanker goes to Khor Fakkan or Fujairah as they are very close," said a spokesman, referring to two Emirati ports on the Gulf of Oman. Maritime experts would then seek to transfer the highly flammable cargo to shore, according to an unnamed official quoted by Japanese state media. "From a viewpoint of global energy security, it is necessary for the international community to jointly deal with the act," said Japanese trade minister Hiroshige Seko at a G20 energy and environment meeting in Japan on Saturday. The other ship, the Norwegian-operated Front Altair, has left Iran's territorial waters, multiple sources said Saturday. The ship is "heading toward the Fujairah-Khor Fakkan area in the United Arab Emirates", head of ports for Iran's southern province of Hormozgan told the semi-official news agency ISNA. The tanker "has left Iran's territorial waters," he said, adding that it was being towed and sprayed with water to cool the hull. Frontline Management, the Norwegian company which owns the ship, confirmed it had left Iranian waters and said "the 23 crew members... remain safe and well, with plans being made for their repatriation soonest". 'Allegations against Iran' Iranian Foreign Minister Mohammad Javad Zarif tweeted that the US had "immediately jumped to make allegations against Iran without a shred of factual or circumstantial evidence." The United States has also accused Iran over May 12 sabotage attacks on four tankers anchored in the Gulf of Oman off Fujairah. UN Secretary-General Antonio Guterres called for an independent investigation. "It's very important to know the truth (and) that responsibilities are clarified," he told reporters at UN headquarters in New York. "Obviously that can only be done if there is an independent entity that verifies those facts." The oil tankers hit Thursday morning were 10 nautical miles apart and heading for Asia when they were struck by explosions after passing through the Strait of Hormuz, some 25 nautical miles off Iran's southern coast. The Front Altair was carrying naphtha, a refined petroleum product, when it was hit by three explosions, according to Norwegian officials. Blocking the Hormuz Strait would be a relatively low-tech, high-impact countermeasure Iran could take against any attack by the United States, and would severely disrupt global oil supplies. But Trump played down the threat. "It's not going to be closed, it's not going to be closed for long and they know it. They've been told in very strong terms," he said on Friday, referring to Iran.

Gulf powers urge action to secure energy supplies as tankers port-bound

Russia on Monday warned of a strong risk of global overproduction of oil that could lead crude prices to drop below $40 a barrel.

"There are really great risks of overproduction today," Russian Energy Minister Alexander Novak said during a meeting with Saudi counterpart Khalid al-Falih in Moscow.

"We have to analyse everything... in order to take a balanced decision in July," he said, referring to a key meeting of the so-called OPEC+ alliance between OPEC members and other oil-producing countries including Russia.

The alliance is set to meet in Vienna at the beginning of July according to the Saudi minister, to decide whether to extend an agreement on production levels.

Russia has agreed with OPEC member countries on cutting production of crude to build up prices after the crash of 2014-15.&nbsp;

The 25-member alliance agreed to cut output by 1.2 million barrels per day from the start of this year after oil prices dipped by more than 30 per cent late last year.

"Prices can drop below $40 and even down to $30 a barrel," Russian Finance Minister Anton Siluanov told lawmakers on Monday, quoted by Russian agencies.

Novak also said that such a scenario "cannot be ruled out".

"A lot depends on the situation on the market in the second and third quarter, from the balance of supply and demand, and how the situation develops with uncertainties, trade wars, and sanctions pressures on several countries," he said.

"We are working to take preventative steps to avoid the scenario that was discussed," Falih said regarding the prospects of prices falling to $30 a barrel, in translated comments.

Massive drops in exports by Iran and <a href="https://www.wionews.com/business-economy/venezuelas-oil-exports-drop-17-in-may-as-sanctions-kick-in-report-224373">Venezuela</a> plus the agreed output cuts implemented by the OPEC+ group since January have cut supplies.

US President Donald Trump has urged OPEC to boost oil production in order to tamp down rising prices.

Russia on Monday warned of a strong risk of global overproduction of oil that could lead crude prices to drop below $40 a barrel. "There are really great risks of overproduction today," Russian Energy Minister Alexander Novak said during a meeting with Saudi counterpart Khalid al-Falih in Moscow.

Russia on Monday warned of a strong risk of global overproduction of oil that could lead crude prices to drop below $40 a barrel. "There are really great risks of overproduction today," Russian Energy Minister Alexander Novak said during a meeting with Saudi counterpart Khalid al-Falih in Moscow. "We have to analyse everything... in order to take a balanced decision in July," he said, referring to a key meeting of the so-called OPEC+ alliance between OPEC members and other oil-producing countries including Russia. The alliance is set to meet in Vienna at the beginning of July according to the Saudi minister, to decide whether to extend an agreement on production levels. Russia has agreed with OPEC member countries on cutting production of crude to build up prices after the crash of 2014-15. The 25-member alliance agreed to cut output by 1.2 million barrels per day from the start of this year after oil prices dipped by more than 30 per cent late last year. "Prices can drop below $40 and even down to $30 a barrel," Russian Finance Minister Anton Siluanov told lawmakers on Monday, quoted by Russian agencies. Novak also said that such a scenario "cannot be ruled out". "A lot depends on the situation on the market in the second and third quarter, from the balance of supply and demand, and how the situation develops with uncertainties, trade wars, and sanctions pressures on several countries," he said. "We are working to take preventative steps to avoid the scenario that was discussed," Falih said regarding the prospects of prices falling to $30 a barrel, in translated comments. Massive drops in exports by Iran and Venezuela plus the agreed output cuts implemented by the OPEC+ group since January have cut supplies. US President Donald Trump has urged OPEC to boost oil production in order to tamp down rising prices.

Russia warns of 'great risk' of oil overproduction

Oil&nbsp;rose to multi-week highs on Monday after OPEC indicated it will likely maintain production cuts that have helped support prices this year, while tensions continued to escalate in the Middle East.

Brent crude was up by 96 cents, or 1.3%, at $73.17 a barrel by 0227 GMT, having earlier touched $73.40, the highest since April 26.

US West Texas Intermediate crude was 82 cents, 1.3%, higher at $63.58 a barrel. The US&nbsp;benchmark reached $63.81 earlier, the highest since May 1.

<a href="https://www.wionews.com/world/saudis-falih-says-oil-stocks-still-building-but-opec-to-act-if-needed-219637">Saudi Energy Minister Khalid al-Falih </a>said on Sunday there was the consensus among the Organization of the Petroleum Exporting Countries (OPEC) and allied&nbsp;oil&nbsp;producers to drive down crude inventories "gently" but he would remain responsive to the needs of a "fragile market."

United Arab Emirates (UAE) Energy Minister Suhail al-Mazrouei earlier told reporters that producers were capable of filling any market gap and that relaxing supply cut was not "the right decision."

Meanwhile, US&nbsp;President Donald Trump threatened Tehran on Sunday, tweeting that a conflict would be the "official end" of Iran, while Saudi Arabia said it was ready to respond with "all strength" and that it was up to Iran to avoid war.

The rhetoric follows last week's attacks on Saudi&nbsp;oil&nbsp;assets and the firing of a rocket on Sunday into Baghdad's heavily fortified "Green Zone" that exploded near the US&nbsp;embassy.

"Al-Falih and the UAE both put paid to suggestions of increasing production over the weekend and then President Trump essentially telling Iran to bring it on, was a perfect short-term storm for&nbsp;oil&nbsp;prices," Greg McKenna, strategist at McKenna Macro, told Reuters by email.

OPEC, Russia and other non-member producers, an alliance known as OPEC+, agreed to reduce output by 1.2 million barrels per day (bpd) from January&nbsp;1 for six months to prevent inventories from increasing and weakening prices.

"This second half, our preference is to maintain production management to keep inventories on their way declining gradually, softly but certainly declining towards normal levels," al-Falih told a news conference after OPEC and other producers met.

Russian Energy Minister Alexander Novak earlier said an easing of cuts had been discussed and the supply situation would be clearer in a month, including from countries under sanctions.

Another bullish signal was the second week of declines in US&nbsp;drilling operations, with energy companies cutting&nbsp;oil&nbsp;rigs to the lowest since March 2018.

The rig count, an early indicator of future output, fell by 3 to 802, General Electric Co's Baker Hughes energy services unit said on Friday.

Oil rose to multi-week highs on Monday after OPEC indicated it will likely maintain production cuts that have helped support prices this year, while tensions continued to escalate in the Middle East.

Oil rose to multi-week highs on Monday after OPEC indicated it will likely maintain production cuts that have helped support prices this year, while tensions continued to escalate in the Middle East. Brent crude was up by 96 cents, or 1.3%, at $73.17 a barrel by 0227 GMT, having earlier touched $73.40, the highest since April 26. US West Texas Intermediate crude was 82 cents, 1.3%, higher at $63.58 a barrel. The US benchmark reached $63.81 earlier, the highest since May 1. Saudi Energy Minister Khalid al-Falih said on Sunday there was the consensus among the Organization of the Petroleum Exporting Countries (OPEC) and allied oil producers to drive down crude inventories "gently" but he would remain responsive to the needs of a "fragile market." United Arab Emirates (UAE) Energy Minister Suhail al-Mazrouei earlier told reporters that producers were capable of filling any market gap and that relaxing supply cut was not "the right decision." Meanwhile, US President Donald Trump threatened Tehran on Sunday, tweeting that a conflict would be the "official end" of Iran, while Saudi Arabia said it was ready to respond with "all strength" and that it was up to Iran to avoid war. The rhetoric follows last week's attacks on Saudi oil assets and the firing of a rocket on Sunday into Baghdad's heavily fortified "Green Zone" that exploded near the US embassy. "Al-Falih and the UAE both put paid to suggestions of increasing production over the weekend and then President Trump essentially telling Iran to bring it on, was a perfect short-term storm for oil prices," Greg McKenna, strategist at McKenna Macro, told Reuters by email. OPEC, Russia and other non-member producers, an alliance known as OPEC+, agreed to reduce output by 1.2 million barrels per day (bpd) from January 1 for six months to prevent inventories from increasing and weakening prices. "This second half, our preference is to maintain production management to keep inventories on their way declining gradually, softly but certainly declining towards normal levels," al-Falih told a news conference after OPEC and other producers met. Russian Energy Minister Alexander Novak earlier said an easing of cuts had been discussed and the supply situation would be clearer in a month, including from countries under sanctions. Another bullish signal was the second week of declines in US drilling operations, with energy companies cutting oil rigs to the lowest since March 2018. The rig count, an early indicator of future output, fell by 3 to 802, General Electric Co's Baker Hughes energy services unit said on Friday.

Oil surges after OPEC indicates it will maintain output cuts

OPEC kingpin Saudi Arabia and key producer United Arab Emirates said Sunday oil supplies were sufficient and stockpiles were still rising despite <a href="https://www.wionews.com/world/oil-producers-meet-to-discuss-output-amid-iran-tension-219851">massive output drops by Iran </a>and Venezuela.

"We see that (oil) inventories are rising and supplies are plenty," Saudi Energy Minister Khalid al-Falih told reporters at the start of a key meeting for oil producers in Jeddah.

"None of us wants to see the (oil) stocks swell again. We have to be cautious."

The United Arab Emirates' energy minister said there was no need to relax an OPEC+ deal to cut output by 1.2 million barrels per day to support prices.

"I don't think... that relaxing the cuts is the right measure" based on prevailing market conditions, Suheil al-Mazrouei told reporters.&nbsp;

"We have seen inventory building. I don't think it makes sense (to alter the existing deal)."&nbsp;

The statements by the two ministers send a clear message that OPEC and its allies appear poised to roll over the output cuts deal for another six months.

The OPEC+ producers, which include Russia, control more than half of the world's crude oil production.

Oil exporting countries have been under pressure from Washington to ramp up production to compensate for plunging Iranian exports amid US sanctions on Tehran, but are fearful that such a move could send prices plunging.

"The picture is foggy," warned Falih.&nbsp;

"It is crucial that we don't take hasty decisions", he said. "We should keep inventories under control."

"This complexity and intensity will continue to mount while the sheer range of issues impacting our business is pulling the oil market in multiple opposing directions," Falih said.

Sunday's meeting comes days after sabotage attacks against tankers in highly sensitive Gulf waters and the bombing of a Saudi pipeline -- the latter claimed by Iran-aligned Yemeni rebels.

"We have strong (oil) industry security... everybody is vulnerable to extreme acts of sabotage," Falih said.

The meeting will not take decisions on oil output but will make recommendations to another crucial ministerial meeting set to take place in Vienna next month.

OPEC kingpin Saudi Arabia and key producer United Arab Emirates said Sunday oil supplies were sufficient and stockpiles were still rising despite massive output drops by Iran and Venezuela.

OPEC kingpin Saudi Arabia and key producer United Arab Emirates said Sunday oil supplies were sufficient and stockpiles were still rising despite massive output drops by Iran and Venezuela. "We see that (oil) inventories are rising and supplies are plenty," Saudi Energy Minister Khalid al-Falih told reporters at the start of a key meeting for oil producers in Jeddah. "None of us wants to see the (oil) stocks swell again. We have to be cautious." The United Arab Emirates' energy minister said there was no need to relax an OPEC+ deal to cut output by 1.2 million barrels per day to support prices. "I don't think... that relaxing the cuts is the right measure" based on prevailing market conditions, Suheil al-Mazrouei told reporters. "We have seen inventory building. I don't think it makes sense (to alter the existing deal)." The statements by the two ministers send a clear message that OPEC and its allies appear poised to roll over the output cuts deal for another six months. The OPEC+ producers, which include Russia, control more than half of the world's crude oil production. Oil exporting countries have been under pressure from Washington to ramp up production to compensate for plunging Iranian exports amid US sanctions on Tehran, but are fearful that such a move could send prices plunging. "The picture is foggy," warned Falih. "It is crucial that we don't take hasty decisions", he said. "We should keep inventories under control." "This complexity and intensity will continue to mount while the sheer range of issues impacting our business is pulling the oil market in multiple opposing directions," Falih said. Sunday's meeting comes days after sabotage attacks against tankers in highly sensitive Gulf waters and the bombing of a Saudi pipeline -- the latter claimed by Iran-aligned Yemeni rebels. "We have strong (oil) industry security... everybody is vulnerable to extreme acts of sabotage," Falih said. The meeting will not take decisions on oil output but will make recommendations to another crucial ministerial meeting set to take place in Vienna next month.

Saudi, UAE see sufficient oil supplies, rising stocks

Saudi Arabia's Energy Minister Khalid al-Falih said on Saturday that OPEC will be responsive to the oil market's needs, but that he was not sure there is an oil shortage with data, particularly from the United States, still showing inventories building.

Speaking in Jeddah ahead of a ministerial panel gathering on Sunday by top OPEC and non-OPEC producers, including Saudi Arabia and Russia, Falih told Reuters OPEC will not decide on output until late June when the group is due to meet.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other non-OPEC producers have agreed to reduce output by 1.2 million barrels per day (bpd) from Jan. 1 for six months, a deal designed to stop inventories building up and weakening prices.

"We will be flexible. We are going to do the right thing as we always do," Falih said of any decision at the meeting in June on continuing the reductions.

Falih said OPEC is guided by two main principles: "One to keep the market in its direction towards balancing and inventories back to normal level. And two to be responsive to market needs. We will strike the right balance I am sure."

OPEC's agreed share of the cuts is 800,000 bpd, but its actual reduction is far larger due to the production losses in Iran and Venezuela. Both are under US sanctions and exempt from the voluntary reductions under the OPEC-led deal.

US President Donald Trump has called on OPEC and the group's de facto leader, Saudi Arabia, and asked them to lower oil prices. Riyadh, however, is reluctant to boost supply quickly and risk a price crash.

Sunday's ministerial panel meeting, known as the JMMC, comes amid concerns of a tight market as Iran's oil exports are likely to drop further in May, and shipments from Venezuela could fall more in coming weeks due to the sanctions by Washington.&nbsp;

Oil contamination also forced Russia to halt flows along the Druzhba pipeline - a key conduit for crude into Eastern Europe and Germany - in April. The suspension, as yet of unclear duration, left refiners scrambling to find supplies.

"I am not sure there is a supply shortage, but we will look at the (market) analysis. We will definitely be responsive and the market will be supplied," Falih said.

"All indications are that inventories are still rising. We saw the data from the US week after week, and they are massive increases, so obviously (there is) supply abundance."

US crude inventories rose unexpectedly last week to their highest since September 2017, while gasoline stockpiles decreased more than forecast, the Energy Information Administration (EIA) said on Wednesday.

An OPEC and the non-OPEC technical committee found that oil producers' compliance with the supply-reduction agreement reached 168% in April, three sources told Reuters on Saturday.

The committee known as the JTC met ahead of the JMMC gathering to discuss the oil markets.

Saudi Arabia's Energy Minister Khalid al-Falih said on Saturday that OPEC will be responsive to the oil market's needs, but that he was not sure there is an oil shortage with data, particularly from the United States, still showing inventories building.

Saudi Arabia's Energy Minister Khalid al-Falih said on Saturday that OPEC will be responsive to the oil market's needs, but that he was not sure there is an oil shortage with data, particularly from the United States, still showing inventories building. Speaking in Jeddah ahead of a ministerial panel gathering on Sunday by top OPEC and non-OPEC producers, including Saudi Arabia and Russia, Falih told Reuters OPEC will not decide on output until late June when the group is due to meet. The Organization of the Petroleum Exporting Countries (OPEC), Russia and other non-OPEC producers have agreed to reduce output by 1.2 million barrels per day (bpd) from Jan. 1 for six months, a deal designed to stop inventories building up and weakening prices. "We will be flexible. We are going to do the right thing as we always do," Falih said of any decision at the meeting in June on continuing the reductions. Falih said OPEC is guided by two main principles: "One to keep the market in its direction towards balancing and inventories back to normal level. And two to be responsive to market needs. We will strike the right balance I am sure." OPEC's agreed share of the cuts is 800,000 bpd, but its actual reduction is far larger due to the production losses in Iran and Venezuela. Both are under US sanctions and exempt from the voluntary reductions under the OPEC-led deal. US President Donald Trump has called on OPEC and the group's de facto leader, Saudi Arabia, and asked them to lower oil prices. Riyadh, however, is reluctant to boost supply quickly and risk a price crash. Sunday's ministerial panel meeting, known as the JMMC, comes amid concerns of a tight market as Iran's oil exports are likely to drop further in May, and shipments from Venezuela could fall more in coming weeks due to the sanctions by Washington. Oil contamination also forced Russia to halt flows along the Druzhba pipeline - a key conduit for crude into Eastern Europe and Germany - in April. The suspension, as yet of unclear duration, left refiners scrambling to find supplies. "I am not sure there is a supply shortage, but we will look at the (market) analysis. We will definitely be responsive and the market will be supplied," Falih said. "All indications are that inventories are still rising. We saw the data from the US week after week, and they are massive increases, so obviously (there is) supply abundance." US crude inventories rose unexpectedly last week to their highest since September 2017, while gasoline stockpiles decreased more than forecast, the Energy Information Administration (EIA) said on Wednesday. An OPEC and the non-OPEC technical committee found that oil producers' compliance with the supply-reduction agreement reached 168% in April, three sources told Reuters on Saturday. The committee known as the JTC met ahead of the JMMC gathering to discuss the oil markets.

Oil stocks still building, but OPEC to act if needed: Saudi Arabia's Energy Minister

OPEC kingpin Saudi Arabia said it had stopped pumping crude oil along a major pipeline on Tuesday following a drone attack, hours after <a href="https://www.wionews.com/world/united-nation-says-rebel-pullout-from-yemen-ports-on-track-218105">Yemen's Huthi rebels</a> said they had targeted vital Saudi installations.

Energy Minister Khalid al-Falih said two pumping stations on the pipeline from the oil-rich eastern province to the Red Sea had been targeted early on Tuesday.

The vital pipeline has a capacity of at least five million barrels per day.

"Saudi Aramco took precautionary measures and temporarily stopped operation of the pipeline, as it is evaluating the situation and working on restoring the operations of the affected pump station and the pipeline," Falih said in a statement cited by state news agency SPA.

The 1,200-kilometre (750-mile) pipeline carries crude from Saudi Arabia's main eastern oil fields to the Red Sea port city of Yanbu in the west.

It was created several decades ago as an alternative for Saudi crude exports if the strategically vital Strait of Hormuz at the mouth of the Gulf were to be closed.&nbsp;

The pumping stations reportedly targeted lie west of the capital Riyadh, at Dawadmi and Afeef.

Yemen's Huthi rebels said Tuesday they had attacked several vital Saudi targets with drones.

The reported pipeline attacks came amid <a href="https://www.wionews.com/world/britain-warns-of-conflict-by-accident-in-gulf-218331">spiralling tensions in the Gulf</a>, following a series of mysterious attacks on ships off the coast of the UAE and a major US military deployment to the region.&nbsp;

"The latest acts of terrorism and sabotage in the Arabian Gulf... not only target the Kingdom but also the security of oil supplies to the world and the global economy," he said.

"These attacks prove again that it is important for us to face terrorist entities, including the Houthi militias in Yemen that are backed by Iran."

OPEC kingpin Saudi Arabia said it had stopped pumping crude oil along a major pipeline on Tuesday following a drone attack, hours after Yemen's Huthi rebels said they had targeted vital Saudi installations.

OPEC kingpin Saudi Arabia said it had stopped pumping crude oil along a major pipeline on Tuesday following a drone attack, hours after Yemen's Huthi rebels said they had targeted vital Saudi installations. Energy Minister Khalid al-Falih said two pumping stations on the pipeline from the oil-rich eastern province to the Red Sea had been targeted early on Tuesday. The vital pipeline has a capacity of at least five million barrels per day. "Saudi Aramco took precautionary measures and temporarily stopped operation of the pipeline, as it is evaluating the situation and working on restoring the operations of the affected pump station and the pipeline," Falih said in a statement cited by state news agency SPA. The 1,200-kilometre (750-mile) pipeline carries crude from Saudi Arabia's main eastern oil fields to the Red Sea port city of Yanbu in the west. It was created several decades ago as an alternative for Saudi crude exports if the strategically vital Strait of Hormuz at the mouth of the Gulf were to be closed. The pumping stations reportedly targeted lie west of the capital Riyadh, at Dawadmi and Afeef. Yemen's Huthi rebels said Tuesday they had attacked several vital Saudi targets with drones. The reported pipeline attacks came amid spiralling tensions in the Gulf, following a series of mysterious attacks on ships off the coast of the UAE and a major US military deployment to the region. "The latest acts of terrorism and sabotage in the Arabian Gulf... not only target the Kingdom but also the security of oil supplies to the world and the global economy," he said. "These attacks prove again that it is important for us to face terrorist entities, including the Houthi militias in Yemen that are backed by Iran."

Saudi Arabia stops pumping oil in major pipeline after Huthi rebel drone strike

Saudi Arabia said Monday two of its oil tankers were damaged in "sabotage attacks" in the Gulf as tensions soared in a region already shaken by a standoff between the United States and Iran.

It came as US Secretary of State <a href="https://www.wionews.com/world/us-state-secretary-pompeo-to-visit-brussels-monday-to-discuss-iran-official-218245">Mike Pompeo scrapped a planned visit to Moscow</a> to head to Brussels instead for talks with European officials on Iran.

Tehran called for an investigation into the "alarming" attacks and warned of "adventurism" by foreign players to disrupt maritime security.

The United States has already <a href="https://www.wionews.com/world/us-sends-assault-ship-missiles-to-mideast-amid-iran-threat-217663">strengthened its military presence</a> in the region, including deploying a number of strategic B-52 bombers in response to alleged Iranian threats.

Saudi Arabia, the Islamic Republic's regional arch-rival, condemned "the acts of sabotage which targeted commercial and civilian vessels near the territorial waters of the United Arab Emirates," a foreign ministry source said.

"This criminal act constitutes a serious threat to the security and safety of maritime navigation and adversely impacts regional and international peace and security," the source added.

The UAE said on Sunday that four commercial vessels of various nationalities had been targeted by acts of sabotage off the emirate of Fujairah.

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Saudi Energy Minister Khalid al-Falih said the two tankers suffered "significant damage" but there were no casualties or any oil spill.

"Two Saudi oil tankers were subjected to a sabotage attack in the exclusive economic zone of the United Arab Emirates, off the coast of the Emirate of Fujairah, while on their way to cross into the Arabian Gulf," the SPA state news agency quoted Falih as saying.

Fujairah port is the only terminal in the UAE located on the Arabian Sea coast, bypassing the Strait of Hormuz, through which most Gulf oil exports pass.

Iran has repeatedly threatened to close the strait in case of a military confrontation with the United States.

One of the two tankers that was attacked was on its way to be loaded with crude oil from a Saudi oil terminal for customers in the United States, Falih said.

'Serious development'

The <a href="https://www.wionews.com/world/uae-says-four-ships-targeted-by-sabotage-operations-near-fujairah-port-218224">UAE did not accuse anyone of responsibility</a> but warned that "carrying out acts of sabotage on commercial and civilian vessels and threatening the safety and lives of those on board is a serious development".

No one was hurt and Abu Dhabi called on world powers to help keep maritime traffic safe.

Iranian foreign ministry spokesman Abbas Mousavi expressed concern over the incident and its possible consequences.

"The incidents in the Sea of Oman are alarming and regrettable," Mousavi said in an English-language statement on the ministry's website.

He also "warned against plots by ill-wishers to disrupt regional security" and "called for the vigilance of regional states in the face of any adventurism by foreign elements", the statement added.

Almost all the oil exports of Saudi Arabia, Iraq, UAE, Kuwait, Qatar and Iran itself, at least 15 million barrels per day, are shipped through the Strait of Hormuz.

The Saudi minister denounced the attack on the vessels, saying it "aims to undermine the freedom of maritime navigation and the security of oil supplies to consumers all over the world."

He also urged the international community to "protect the safety of maritime navigation and the security of oil tankers, to mitigate against the adverse consequences of such incidents on energy markets, and the danger they pose to the global economy."

The UAE had earlier categorically denied reported on social media of massive explosions in oil tankers in the emirate.

The Pentagon said Friday that it was deploying an amphibious assault ship and a Patriot missile battery to the Middle East to bolster an aircraft carrier force sent to counter alleged Iranian threats.

The increasing tensions come after Tehran said Wednesday it had stopped respecting limits on its nuclear activities agreed under a 2015 deal with major powers.

Iran said it was responding to the sweeping unilateral sanctions that Washington has reimposed since it quit the agreement one year ago, which have dealt a <a href="https://www.wionews.com/world/move-on-nuclear-curbs-shows-iran-not-in-position-of-weakness-says-lawmaker-218222">severe blow to the Iranian economy</a>.

Pompeo revised his travel plans to include a visit to Brussels on Monday to hold talks with French, British and German officials on "pressing matters" including Iran, a State Department official said

As a result, the top US diplomat is scrapping a stop expected on Monday in Moscow, but will still head to the Russian Black Sea resort of Sochi on Tuesday to meet President Vladimir Putin and Foreign Minister Sergei Lavrov.

Saudi Arabia said Monday two of its oil tankers were damaged in "sabotage attacks" in the Gulf as tensions soared in a region already shaken by a standoff between the United States and Iran.

Saudi Arabia said Monday two of its oil tankers were damaged in "sabotage attacks" in the Gulf as tensions soared in a region already shaken by a standoff between the United States and Iran. It came as US Secretary of State Mike Pompeo scrapped a planned visit to Moscow to head to Brussels instead for talks with European officials on Iran. Tehran called for an investigation into the "alarming" attacks and warned of "adventurism" by foreign players to disrupt maritime security. The United States has already strengthened its military presence in the region, including deploying a number of strategic B-52 bombers in response to alleged Iranian threats. Saudi Arabia, the Islamic Republic's regional arch-rival, condemned "the acts of sabotage which targeted commercial and civilian vessels near the territorial waters of the United Arab Emirates," a foreign ministry source said. "This criminal act constitutes a serious threat to the security and safety of maritime navigation and adversely impacts regional and international peace and security," the source added. The UAE said on Sunday that four commercial vessels of various nationalities had been targeted by acts of sabotage off the emirate of Fujairah. × Saudi Energy Minister Khalid al-Falih said the two tankers suffered "significant damage" but there were no casualties or any oil spill. "Two Saudi oil tankers were subjected to a sabotage attack in the exclusive economic zone of the United Arab Emirates, off the coast of the Emirate of Fujairah, while on their way to cross into the Arabian Gulf," the SPA state news agency quoted Falih as saying. Fujairah port is the only terminal in the UAE located on the Arabian Sea coast, bypassing the Strait of Hormuz, through which most Gulf oil exports pass. Iran has repeatedly threatened to close the strait in case of a military confrontation with the United States. One of the two tankers that was attacked was on its way to be loaded with crude oil from a Saudi oil terminal for customers in the United States, Falih said. 'Serious development' The UAE did not accuse anyone of responsibility but warned that "carrying out acts of sabotage on commercial and civilian vessels and threatening the safety and lives of those on board is a serious development". No one was hurt and Abu Dhabi called on world powers to help keep maritime traffic safe. Iranian foreign ministry spokesman Abbas Mousavi expressed concern over the incident and its possible consequences. "The incidents in the Sea of Oman are alarming and regrettable," Mousavi said in an English-language statement on the ministry's website. He also "warned against plots by ill-wishers to disrupt regional security" and "called for the vigilance of regional states in the face of any adventurism by foreign elements", the statement added. Almost all the oil exports of Saudi Arabia, Iraq, UAE, Kuwait, Qatar and Iran itself, at least 15 million barrels per day, are shipped through the Strait of Hormuz. The Saudi minister denounced the attack on the vessels, saying it "aims to undermine the freedom of maritime navigation and the security of oil supplies to consumers all over the world." He also urged the international community to "protect the safety of maritime navigation and the security of oil tankers, to mitigate against the adverse consequences of such incidents on energy markets, and the danger they pose to the global economy." The UAE had earlier categorically denied reported on social media of massive explosions in oil tankers in the emirate. The Pentagon said Friday that it was deploying an amphibious assault ship and a Patriot missile battery to the Middle East to bolster an aircraft carrier force sent to counter alleged Iranian threats. The increasing tensions come after Tehran said Wednesday it had stopped respecting limits on its nuclear activities agreed under a 2015 deal with major powers. Iran said it was responding to the sweeping unilateral sanctions that Washington has reimposed since it quit the agreement one year ago, which have dealt a severe blow to the Iranian economy. Pompeo revised his travel plans to include a visit to Brussels on Monday to hold talks with French, British and German officials on "pressing matters" including Iran, a State Department official said As a result, the top US diplomat is scrapping a stop expected on Monday in Moscow, but will still head to the Russian Black Sea resort of Sochi on Tuesday to meet President Vladimir Putin and Foreign Minister Sergei Lavrov.

Two Saudi tankers came under 'sabotage attack' off UAE; no casualties

Oil prices rose on Monday, lifted by Saudi oil minister Khalid al-Falih saying an end to OPEC-led supply cuts was unlikely before June and a report of falling US drilling activity.

Despite this, markets were somewhat held back after US employment data raised concerns that an economic slowdown in Asia and Europe was spilling into the United States, where growth has so far still been healthy.

US West Texas Intermediate (WTI) crude oil futures were at $56.29 per barrel at 0156 GMT, up 22 cents, or 0.4 per cent from their last close.

Brent crude futures were at $65.91 per barre, up 17 cents, or 0.3 per cent.

Oil markets have been supported this year by ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated allies like Russia - known as the OPEC+ alliance. OPEC+ has pledged to cut 1.2 million barrels per day (bpd) in crude supply since the start of the year to tighten markets and prop up prices.

The group will meet in Vienna on April 17-18, with another gathering scheduled for June 25-26, to discuss supply policy.

Saudi oil minister Khalid al-Falih told Reuters on Sunday it would be too early to change OPEC+ output policy at the group's meeting in April.

"We will see what happens by April, if there is any unforeseen disruption somewhere else, but barring this I think we will just be kicking the can forward," Falih said.

Prices were also supported by US energy services firm Baker Hughes' latest weekly report showing the number of rigs drilling for new oil production in the United States fell by nine to 834.

High drilling activity last year resulted in a more than 2 million bpd rise in production, to a record 12.1 million bpd reached this February.

"This is the third straight week of decline...after a number of oil producers trimmed their spending outlooks for 2019," ANZ bank said on Monday.

The slowdown in drilling points to more timid output growth going forward, but because the overall drilling level remains relatively high despite the recent decline, many analysts still expect U.S. crude output to rise above 13 million bpd soon.

Oil prices rose on Monday, lifted by Saudi oil minister Khalid al-Falih saying an end to OPEC-led supply cuts was unlikely before June and a report of falling US drilling activity.

Oil prices rose on Monday, lifted by Saudi oil minister Khalid al-Falih saying an end to OPEC-led supply cuts was unlikely before June and a report of falling US drilling activity. Despite this, markets were somewhat held back after US employment data raised concerns that an economic slowdown in Asia and Europe was spilling into the United States, where growth has so far still been healthy. US West Texas Intermediate (WTI) crude oil futures were at $56.29 per barrel at 0156 GMT, up 22 cents, or 0.4 per cent from their last close. Brent crude futures were at $65.91 per barre, up 17 cents, or 0.3 per cent. Oil markets have been supported this year by ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated allies like Russia - known as the OPEC+ alliance. OPEC+ has pledged to cut 1.2 million barrels per day (bpd) in crude supply since the start of the year to tighten markets and prop up prices. The group will meet in Vienna on April 17-18, with another gathering scheduled for June 25-26, to discuss supply policy. Saudi oil minister Khalid al-Falih told Reuters on Sunday it would be too early to change OPEC+ output policy at the group's meeting in April. "We will see what happens by April, if there is any unforeseen disruption somewhere else, but barring this I think we will just be kicking the can forward," Falih said. Prices were also supported by US energy services firm Baker Hughes' latest weekly report showing the number of rigs drilling for new oil production in the United States fell by nine to 834. High drilling activity last year resulted in a more than 2 million bpd rise in production, to a record 12.1 million bpd reached this February. "This is the third straight week of decline...after a number of oil producers trimmed their spending outlooks for 2019," ANZ bank said on Monday. The slowdown in drilling points to more timid output growth going forward, but because the overall drilling level remains relatively high despite the recent decline, many analysts still expect U.S. crude output to rise above 13 million bpd soon.

Oil rises on OPEC-led supply cuts, but slowing economy restricts gains

*By:&nbsp;Gregory Brew

The Organization of the Petroleum Exporting Countries likes to look united.

That’s evident when OPEC leaders meet in Vienna at the end of each year to decide how much oil its members will aim to produce the next year. There is always a show of togetherness and the appearance of the quasi-cartel’s ability to move markets.

But the truth is, OPEC is in the midst of a major crisis made more evident by Qatar’s announcement that it would be leaving OPEC, partly to protest Saudi dominance over the group.

My research has taken me through the history of oil, particularly the relationship between oil revenues, economic development and the geopolitical balance of power in the 1960s and 1970s. I believe that rather than the arbiter of global energy, OPEC has often been held back by division, disagreement and divergent interests.

This weakness helps explain why OPEC has struggled to move markets in effective ways since the 2014 collapse of oil prices. The latest production cuts, which were bigger than expected but followed considerable acrimony, are further proof that OPEC’s disunity remains intact.

Early days: Divided and powerless

OPEC was formed from frustration. In the 1950s, the world was awash in oil as small nations in the Middle East and Latin America discovered enormous deposits.

To gain access to those deposits, the major oil companies, known as the “Seven Sisters,” signed concessionary agreements with local governments. This arrangement gave the companies control over the oil – they set production levels and prices – while governments simply collected a check.

In February 1959, amid an oil glut, the Seven Sisters decided that a price correction was necessary. Acting unilaterally, they cut the price of oil, from US$2.08 to $1.80 by August 1960.

That may sound odd today, but back then oil prices didn’t always follow market forces and were typically set by the companies.

The cuts meant a significant loss of revenue for the oil-producing states. In protest, the oil ministers of Iraq, Iran, Venezuela, Saudi Arabia and Kuwait met in Baghdad that September and formed OPEC to achieve a more equitable arrangement with the Seven Sisters. Algeria, Qatar, Indonesia and Libya joined later.

But the big oil exporters like Iran and Saudi Arabia could do little to coerce the companies. Oil was abundant, and the companies could successfully exclude any country from the market, as they did with Iran in 1951. OPEC did not possess enough market share or unity to pressure the companies into surrendering control over price.

A new balance of power

OPEC couldn’t agree on a consistent policy among its members. Saudi Arabia wanted to keep production levels low and prices consistent. Iran wanted prices pushed as high as possible in order to maximize revenue.

According to Ian Skeet, a scholar and an oil consultant, the shah of Iran sought a separate agreement that sabotaged an attempt to extract more favorable terms from the Seven Sisters in 1963.

During the 1960s, OPEC failed to form a united front.

Nevertheless, things were changing. Demand for oil shot up and US&nbsp;production stagnated. The Seven Sisters’ power was undermined by international competitors drilling new fields in North Africa, where Libya’s Muammar Qaddafi threatened to shut off supply if he didn’t get higher prices. Oil giants faced more pressure to deliver better terms to producing governments.

These conditions, while not the result of OPEC’s actions, gave it an opportunity to upset the balance of power.

Embargo, revolution and crisis 

This shift accelerated in the 1970s as war broke out between Israel and its Arab neighbors in October 1973.

To punish the US&nbsp;for supporting the Jewish state, Arab oil producers (not all OPEC members, as popularly believed) cut production and declared an embargo against the United States.

OPEC also demanded a higher oil price. After rejecting a small gesture from the Seven Sisters, OPEC announced it would double the price to $5 – then hiked it again to $11.65.

How did the balance of power seem to shift so suddenly? Among other reasons, oil companies could not agree among themselves on a new oil price and they were tempted by the big profits that would result. OPEC seized control of the market largely due to circumstances beyond its control.

Despite its victory, OPEC had come no closer to resolving its internal divisions. This became evident when the next energy crisis hit, in 1979, when Iran’s revolution broke out.

Global oil markets panicked. Iranian production fell. And other OPEC members sold their own oil at costly premiums, sending the price even higher.

Saudi Arabia tried to impose a quota system. Most members ignored their quotas or overproduced.

Meanwhile, oil-importing countries like the US&nbsp;and the UK&nbsp;sought improve fuel efficiency and invested in domestic oil production in places like Alaska the North Sea. By 1985, OPEC’s share of the global market had fallen below 30 percent.

By 1986, Saudi Arabia had had enough. Without warning, its production shot up by more than 2 million barrels per day, flooding the market and pushing the average price down to $18 per barrel, about $39 today, according to oil company records.

This move indicated Saudi willingness to use its massive reserves to “correct” the market and push out high-cost producers, even at the cost of its OPEC allies.

Russia's new role

As OPEC’s fortunes have oscillated with increasing volatility since the 1986 shock, cooperation has remained elusive.

In 2014, oil prices began to decline, due to increasing US&nbsp;production. To squeeze out American drillers, Saudi Arabia pumped more oil, sending prices to historic inflation-adjusted lows in early 2016.

But the move backfired: US&nbsp;producers held on, while OPEC members like Venezuela endured enormous economic pain.

To gain leverage, Saudi Arabia has partnered with Russia, a major oil exporter that doesn’t belong to OPEC, forming what some analysts have called OPEC+. The two countries now coordinate their production cuts to stabilize prices.

OPEC+ minus one 

Not all OPEC members are happy about this arrangement, including Qatar, a small Persian Gulf state. It has been at odds with Saudi Arabia since 2017. In December 2018, Qatar announced it would be leaving OPEC to concentrate on liquefied natural gas exports.

Meanwhile, President Donald Trump was imploring OPEC to pump more oil rather than less of it, to keep gasoline prices low.

When OPEC+ met in Vienna it didn’t buckle. But the deal it reached followed considerable disagreement, which laid bare divisions within the group over how much oil output it should cut. In the end, Russia and Saudi Arabia agreed to do most of the cutting required to slash oil production by 1.2 million barrels per day. And Iran did not pledge any cuts at all.

The overall cut was bigger than expected. But Iran’s defiance, Qatar’s departure and the fight over cuts underscores what has been true from the very beginning: OPEC projects unity, but behind the scenes, the group struggles with division, disunity and differing interests.

*Gregory Brew is a Postdoctoral Fellow, Center for Presidential History, Southern Methodist University.

This article was originally published on <a href="https://theconversation.com/us">The Conversation</a>. Read the&nbsp;<a href="https://theconversation.com/saudi-arabia-is-allying-with-russia-to-shore-up-oil-prices-as-opecs-power-wanes-108310">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

*By: Gregory Brew The Organization of the Petroleum Exporting Countries likes to look united. That’s evident when OPEC leaders meet in Vienna at the end of each year to decide how much oil its members will aim to produce the next year.

*By: Gregory Brew The Organization of the Petroleum Exporting Countries likes to look united. That’s evident when OPEC leaders meet in Vienna at the end of each year to decide how much oil its members will aim to produce the next year. There is always a show of togetherness and the appearance of the quasi-cartel’s ability to move markets. But the truth is, OPEC is in the midst of a major crisis made more evident by Qatar’s announcement that it would be leaving OPEC, partly to protest Saudi dominance over the group. My research has taken me through the history of oil, particularly the relationship between oil revenues, economic development and the geopolitical balance of power in the 1960s and 1970s. I believe that rather than the arbiter of global energy, OPEC has often been held back by division, disagreement and divergent interests. This weakness helps explain why OPEC has struggled to move markets in effective ways since the 2014 collapse of oil prices. The latest production cuts, which were bigger than expected but followed considerable acrimony, are further proof that OPEC’s disunity remains intact. Early days: Divided and powerless OPEC was formed from frustration. In the 1950s, the world was awash in oil as small nations in the Middle East and Latin America discovered enormous deposits. To gain access to those deposits, the major oil companies, known as the “Seven Sisters,” signed concessionary agreements with local governments. This arrangement gave the companies control over the oil – they set production levels and prices – while governments simply collected a check. In February 1959, amid an oil glut, the Seven Sisters decided that a price correction was necessary. Acting unilaterally, they cut the price of oil, from US$2.08 to $1.80 by August 1960. That may sound odd today, but back then oil prices didn’t always follow market forces and were typically set by the companies. The cuts meant a significant loss of revenue for the oil-producing states. In protest, the oil ministers of Iraq, Iran, Venezuela, Saudi Arabia and Kuwait met in Baghdad that September and formed OPEC to achieve a more equitable arrangement with the Seven Sisters. Algeria, Qatar, Indonesia and Libya joined later. But the big oil exporters like Iran and Saudi Arabia could do little to coerce the companies. Oil was abundant, and the companies could successfully exclude any country from the market, as they did with Iran in 1951. OPEC did not possess enough market share or unity to pressure the companies into surrendering control over price. A new balance of power OPEC couldn’t agree on a consistent policy among its members. Saudi Arabia wanted to keep production levels low and prices consistent. Iran wanted prices pushed as high as possible in order to maximize revenue. According to Ian Skeet, a scholar and an oil consultant, the shah of Iran sought a separate agreement that sabotaged an attempt to extract more favorable terms from the Seven Sisters in 1963. During the 1960s, OPEC failed to form a united front. Nevertheless, things were changing. Demand for oil shot up and US production stagnated. The Seven Sisters’ power was undermined by international competitors drilling new fields in North Africa, where Libya’s Muammar Qaddafi threatened to shut off supply if he didn’t get higher prices. Oil giants faced more pressure to deliver better terms to producing governments. These conditions, while not the result of OPEC’s actions, gave it an opportunity to upset the balance of power. Embargo, revolution and crisis This shift accelerated in the 1970s as war broke out between Israel and its Arab neighbors in October 1973. To punish the US for supporting the Jewish state, Arab oil producers (not all OPEC members, as popularly believed) cut production and declared an embargo against the United States. OPEC also demanded a higher oil price. After rejecting a small gesture from the Seven Sisters, OPEC announced it would double the price to $5 – then hiked it again to $11.65. How did the balance of power seem to shift so suddenly? Among other reasons, oil companies could not agree among themselves on a new oil price and they were tempted by the big profits that would result. OPEC seized control of the market largely due to circumstances beyond its control. Despite its victory, OPEC had come no closer to resolving its internal divisions. This became evident when the next energy crisis hit, in 1979, when Iran’s revolution broke out. Global oil markets panicked. Iranian production fell. And other OPEC members sold their own oil at costly premiums, sending the price even higher. Saudi Arabia tried to impose a quota system. Most members ignored their quotas or overproduced. Meanwhile, oil-importing countries like the US and the UK sought improve fuel efficiency and invested in domestic oil production in places like Alaska the North Sea. By 1985, OPEC’s share of the global market had fallen below 30 percent. By 1986, Saudi Arabia had had enough. Without warning, its production shot up by more than 2 million barrels per day, flooding the market and pushing the average price down to $18 per barrel, about $39 today, according to oil company records. This move indicated Saudi willingness to use its massive reserves to “correct” the market and push out high-cost producers, even at the cost of its OPEC allies. Russia's new role As OPEC’s fortunes have oscillated with increasing volatility since the 1986 shock, cooperation has remained elusive. In 2014, oil prices began to decline, due to increasing US production. To squeeze out American drillers, Saudi Arabia pumped more oil, sending prices to historic inflation-adjusted lows in early 2016. But the move backfired: US producers held on, while OPEC members like Venezuela endured enormous economic pain. To gain leverage, Saudi Arabia has partnered with Russia, a major oil exporter that doesn’t belong to OPEC, forming what some analysts have called OPEC+. The two countries now coordinate their production cuts to stabilize prices. OPEC+ minus one Not all OPEC members are happy about this arrangement, including Qatar, a small Persian Gulf state. It has been at odds with Saudi Arabia since 2017. In December 2018, Qatar announced it would be leaving OPEC to concentrate on liquefied natural gas exports. Meanwhile, President Donald Trump was imploring OPEC to pump more oil rather than less of it, to keep gasoline prices low. When OPEC+ met in Vienna it didn’t buckle. But the deal it reached followed considerable disagreement, which laid bare divisions within the group over how much oil output it should cut. In the end, Russia and Saudi Arabia agreed to do most of the cutting required to slash oil production by 1.2 million barrels per day. And Iran did not pledge any cuts at all. The overall cut was bigger than expected. But Iran’s defiance, Qatar’s departure and the fight over cuts underscores what has been true from the very beginning: OPEC projects unity, but behind the scenes, the group struggles with division, disunity and differing interests. *Gregory Brew is a Postdoctoral Fellow, Center for Presidential History, Southern Methodist University. This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Saudi Arabia is allying with Russia to shore up oil prices as OPEC's power wanes

OPEC will meet with 10 partner countries, including Russia, on Friday to try to thrash out an agreement on oil production cuts, a day after the group's members failed to reach a deal.

The oil cartel had been expected to sign off on cuts to stem a plunge in oil prices at a meeting on Thursday, but it broke up without an accord.

"No, I am not confident" about the chances of a deal, Saudi oil minister Khalid Al-Falih told reporters after a long day of <a href="http://www.wionews.com/business-economy/opec-oil-cuts-at-risk-as-russia-yet-to-commit-181925">negotiations at OPEC</a>'s headquarters in Vienna.

However, OPEC and its non-cartel members -- who account for around half of global output -- agree on one thing: a glut on the market has led to oil prices falling by more than 30 per cent in the space of two months.

However, the major players among the oil giants all have their own reasons to look to others to act.

For Russia, which leads the non-member countries in the so-called OPEC+ alliance, "it's much more difficult to cut than for other countries, because of our climatic conditions," Russian Energy Minister Alexander Novak said on Thursday in Saint Petersburg.

Saudi Arabia, meanwhile, has to bear in mind pressure from the US, after President <a href="http://www.wionews.com/world/opec-meets-as-trump-calls-for-oil-taps-to-be-kept-on-181837">Donald Trump</a> demanded in a tweet on Wednesday that OPEC not boost prices.

In addition, the kingdom's diplomatic position has been weakened by the furore over the killing of journalist Jamal Khashoggi.

Though al-Falih insisted that "we don't need permission from anyone to cut" production, the figure of a million barrels put forward by Saudi Arabia was lower than the reduction expected by the markets.

Market jitters

Iran, Saudi Arabia's geopolitical rival and OPEC's third-largest producer, suggested it was in favour of deeper cuts -- while asking to be exempted from them because of the effects of US sanctions targeting its oil sector.

The thorny question of exemptions, which will also be sought by Venezuela and Libya according to the Bloomberg news agency, could be crucial for Friday's talks.

The amount and the timetable of any cuts imposed by Russia will also be a key sticking point.

Iraqi oil minister Thamir Abbas Al Ghadhban said he was still "hopeful" an agreement could be reached during talks on Friday.

However, markets displayed doubts with fresh falls in oil prices sparking a sell-off of stocks by investors.

The price of a barrel of Brent, the European benchmark, sank below the symbolic $60 mark because the reduction of around one million barrels floated by Saudi Arabia was below what markets had been expecting.

Analysts say that the details of any agreement will be key in determining what happens next to prices.

"If it's one million (barrels) excluding Iran, then it's in fact 1.2, 1.3, which should be supportive of price," Abhishek Deshpande, an oil analyst at JP Morgan, told AFP.

This would be because the markets would price in the drop in Iran's production expected due to sanctions.

"But if (the agreement) is including Iran, that's not enough," Deshpande added.

In June, OPEC and its partners agreed to allow for a boost in production by Saudi Arabia and Russia to compensate for the expected losses in production from Iran after the US dramatically withdrew from the Iran nuclear deal in May and vowed to re-impose sanctions.

However, the US then granted temporary waivers to eight allies to allow them to carry on importing Iranian oil, contributing to a plunge in oil prices which wiped out the gains seen since early 2017.

OPEC will meet with 10 partner countries, including Russia, on Friday to try to thrash out an agreement on oil production cuts, a day after the group's members failed to reach a deal.

OPEC will meet with 10 partner countries, including Russia, on Friday to try to thrash out an agreement on oil production cuts, a day after the group's members failed to reach a deal. The oil cartel had been expected to sign off on cuts to stem a plunge in oil prices at a meeting on Thursday, but it broke up without an accord. "No, I am not confident" about the chances of a deal, Saudi oil minister Khalid Al-Falih told reporters after a long day of negotiations at OPEC's headquarters in Vienna. However, OPEC and its non-cartel members -- who account for around half of global output -- agree on one thing: a glut on the market has led to oil prices falling by more than 30 per cent in the space of two months. However, the major players among the oil giants all have their own reasons to look to others to act. For Russia, which leads the non-member countries in the so-called OPEC+ alliance, "it's much more difficult to cut than for other countries, because of our climatic conditions," Russian Energy Minister Alexander Novak said on Thursday in Saint Petersburg. Saudi Arabia, meanwhile, has to bear in mind pressure from the US, after President Donald Trump demanded in a tweet on Wednesday that OPEC not boost prices. In addition, the kingdom's diplomatic position has been weakened by the furore over the killing of journalist Jamal Khashoggi. Though al-Falih insisted that "we don't need permission from anyone to cut" production, the figure of a million barrels put forward by Saudi Arabia was lower than the reduction expected by the markets. Market jitters Iran, Saudi Arabia's geopolitical rival and OPEC's third-largest producer, suggested it was in favour of deeper cuts -- while asking to be exempted from them because of the effects of US sanctions targeting its oil sector. The thorny question of exemptions, which will also be sought by Venezuela and Libya according to the Bloomberg news agency, could be crucial for Friday's talks. The amount and the timetable of any cuts imposed by Russia will also be a key sticking point. Iraqi oil minister Thamir Abbas Al Ghadhban said he was still "hopeful" an agreement could be reached during talks on Friday. However, markets displayed doubts with fresh falls in oil prices sparking a sell-off of stocks by investors. The price of a barrel of Brent, the European benchmark, sank below the symbolic $60 mark because the reduction of around one million barrels floated by Saudi Arabia was below what markets had been expecting. Analysts say that the details of any agreement will be key in determining what happens next to prices. "If it's one million (barrels) excluding Iran, then it's in fact 1.2, 1.3, which should be supportive of price," Abhishek Deshpande, an oil analyst at JP Morgan, told AFP. This would be because the markets would price in the drop in Iran's production expected due to sanctions. "But if (the agreement) is including Iran, that's not enough," Deshpande added. In June, OPEC and its partners agreed to allow for a boost in production by Saudi Arabia and Russia to compensate for the expected losses in production from Iran after the US dramatically withdrew from the Iran nuclear deal in May and vowed to re-impose sanctions. However, the US then granted temporary waivers to eight allies to allow them to carry on importing Iranian oil, contributing to a plunge in oil prices which wiped out the gains seen since early 2017.

OPEC and partners face steep challenge to reach oil cut deal

Saudi Arabia is seeking to persuade Russia on Wednesday to cut oil production substantially with OPEC next year in an attempt to arrest a decline in the price of crude and prevent another global glut.

Russian Energy Minister Alexander Novak was due later in the day to meet his Saudi counterpart Khalid al-Falih, whose country leads the Organization of the Petroleum Exporting Countries.

OPEC holds policy talks on Thursday in Vienna, followed by a gathering with allies including Russia on Friday.

Saudi Arabia has indicated it wants OPEC and its allies to cut output by at least 1.3 million barrels per day, or 1.3 per cent of global production.

Riyadh wants Moscow to contribute at least 250,000-300,000 bpd to the cut but Russia insists the amount should be only half of that, OPEC and non-OPEC sources said.

"It is not easy but we will always work together with our colleagues," United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui told reporters when asked about Russia's position.

A source close to the Russian Energy Ministry said: "No one is eager to cut unless there is an emergency. It is the United States where we are seeing the bulk of the increase in oil output. OPEC and Russia will be very careful about voluntary 'blood letting'."

Russia, Saudi Arabia and the United States have been vying for the position of top crude producer in recent years. The United States is not part of any output-limiting initiative due to its strict anti-trust legislation and fragmented oil industry.

Crude prices have sunk since October due to global economic weakness and fears of a glut due largely to rising US production.

Saudi Arabia is seeking to persuade Russia on Wednesday to cut oil production substantially with OPEC next year in an attempt to arrest a decline in the price of crude and prevent another global glut.

Saudi Arabia is seeking to persuade Russia on Wednesday to cut oil production substantially with OPEC next year in an attempt to arrest a decline in the price of crude and prevent another global glut. Russian Energy Minister Alexander Novak was due later in the day to meet his Saudi counterpart Khalid al-Falih, whose country leads the Organization of the Petroleum Exporting Countries. OPEC holds policy talks on Thursday in Vienna, followed by a gathering with allies including Russia on Friday. Saudi Arabia has indicated it wants OPEC and its allies to cut output by at least 1.3 million barrels per day, or 1.3 per cent of global production. Riyadh wants Moscow to contribute at least 250,000-300,000 bpd to the cut but Russia insists the amount should be only half of that, OPEC and non-OPEC sources said. "It is not easy but we will always work together with our colleagues," United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui told reporters when asked about Russia's position. A source close to the Russian Energy Ministry said: "No one is eager to cut unless there is an emergency. It is the United States where we are seeing the bulk of the increase in oil output. OPEC and Russia will be very careful about voluntary 'blood letting'." Russia, Saudi Arabia and the United States have been vying for the position of top crude producer in recent years. The United States is not part of any output-limiting initiative due to its strict anti-trust legislation and fragmented oil industry. Crude prices have sunk since October due to global economic weakness and fears of a glut due largely to rising US production.

Saudi Arabia works on convincing Russia to join oil cuts

Saudi Arabia was set to sign deals worth $50 billion on Tuesday at the opening of an investment conference despite being overshadowed by the killing of journalist Jamal Khashoggi which prompted a boycott by Western politicians, top world bankers and company executives.

Energy Minister Khalid al-Falih told a panel that the world's largest oil exporter was passing through a "crisis of a sort" but would power ahead with economic diversification plans.

"Nobody in the kingdom can justify it (Khashoggi's killing) or explain it," he said.

Speaking at the opening session, Saudi businesswoman Lubna Olayan described the killing of the dissident Saudi journalist which has sparked a global outcry and strained Riyadh's ties with the West as "alien to our culture".

"It is natural that our thoughts tend to focus on recent events surrounding the death of Jamal Khashoggi ... may he rest in peace," she said.

Hundreds of bankers and company executives joined officials at a palatial Riyadh hotel for the Future Investment Initiative. But while last year's inaugural conference drew the global business elite, this year's event has been marred by the pullout of more than two dozen high-level speakers.

Khashoggi, a critic of Saudi Arabia's crown prince, vanished after he entered its consulate in Istanbul on October 2. After first denying any involvement in his disappearance, Riyadh on Saturday said Khashoggi died during a fight in the consulate. Later, a Saudi official attributed the death to a chokehold.

Turkey's president said in parliament in Ankara on Tuesday that there was strong evidence the killing was savage and planned. He said he was not satisfied with Riyadh placing the blame on some of its intelligence agents.

Many foreign investors see a risk that the Khashoggi case, which drew global condemnation, could damage Riyadh's ties with Western governments. Saudi Arabia's stock index was down 1.7 per cent in afternoon trading on persistent investor concern.

U.S. Treasury Secretary Steven Mnuchin and senior ministers from Britain and France pulled out of the event along with chief executives or chairmen of about a dozen big financial firms such as JP Morgan Chase and HSBC, and International Monetary Fund chief Christine Lagarde.

NEW DEALS

However, Saudi Arabia is set to sign deals worth more than $50 billion on the opening day in the oil, gas, industries and infrastructure sectors with firms such as Trafigura, Total, Hyundai, Norinco, Schlumberger, Halliburton and Baker Hughes.

Oil giant Saudi Aramco said it signed 15 memoranda of understandings worth $34 billion.

Total Chief Executive Patrick Pouyanné, a panelist on Tuesday, said the French oil and gas producer would announce a retail network in the kingdom with Saudi Aramco.

Russia sent a large delegation led by Direct Investment Fund head Kirill Dmitriev, who said Saudi Arabia's economic transformation was "important for the world" and that partnerships between sovereign wealth funds was a "great opportunity".

The managing director of the kingdom's sovereign wealth fund, the main backer of the event, said the country was becoming more transparent and that the Saudi Public Investment Fund continued to develop new industries under economic reforms launched by Crown Prince Mohammed bin Salman.

Yasir al-Rumayyan said the fund has invested in 50 or 60 firms via SoftBank Group's Vision Fund and would bring most of those businesses to the kingdom. PIF has committed to invest $45 billion in Vision Fund.

Many Western banks and other companies, fearful of losing business such as fees from arranging deals for Saudi Arabia's $250 billion sovereign wealth fund, sent lower-level executives even as their top people stayed away.

Top executives of Asian firms have been hesitant to pull out, so the participation of Chinese and Japanese institutions may help Riyadh claim the three-day conference as a success.

For these reasons, the Western boycott may have little long-term impact on Saudi economic prospects.

Foreigners sold a net 4.01 billion riyals ($1.07 billion) of Saudi equities last week, by far the biggest pull-out of overseas money since the stock market opened to direct foreign investment in mid-2015.

The event is being held at the Ritz-Carlton in Riyadh, where scores of princes, businessmen and officials were detained in a crackdown on corruption soon after last year's conference ended.

Authorities said the crackdown extracted over $100 billion from suspects in financial settlements. But that figure has not been verified, and details of the alleged crimes were never made public, fuelling investors' concern about legal transparency.

Saudi Arabia was set to sign deals worth $50 billion on Tuesday at the opening of an investment conference despite being overshadowed by the killing of journalist Jamal Khashoggi which prompted a boycott by Western politicians, top world bankers and company executives.

Saudi Arabia was set to sign deals worth $50 billion on Tuesday at the opening of an investment conference despite being overshadowed by the killing of journalist Jamal Khashoggi which prompted a boycott by Western politicians, top world bankers and company executives. Energy Minister Khalid al-Falih told a panel that the world's largest oil exporter was passing through a "crisis of a sort" but would power ahead with economic diversification plans. "Nobody in the kingdom can justify it (Khashoggi's killing) or explain it," he said. Speaking at the opening session, Saudi businesswoman Lubna Olayan described the killing of the dissident Saudi journalist which has sparked a global outcry and strained Riyadh's ties with the West as "alien to our culture". "It is natural that our thoughts tend to focus on recent events surrounding the death of Jamal Khashoggi ... may he rest in peace," she said. Hundreds of bankers and company executives joined officials at a palatial Riyadh hotel for the Future Investment Initiative. But while last year's inaugural conference drew the global business elite, this year's event has been marred by the pullout of more than two dozen high-level speakers. Khashoggi, a critic of Saudi Arabia's crown prince, vanished after he entered its consulate in Istanbul on October 2. After first denying any involvement in his disappearance, Riyadh on Saturday said Khashoggi died during a fight in the consulate. Later, a Saudi official attributed the death to a chokehold. Turkey's president said in parliament in Ankara on Tuesday that there was strong evidence the killing was savage and planned. He said he was not satisfied with Riyadh placing the blame on some of its intelligence agents. Many foreign investors see a risk that the Khashoggi case, which drew global condemnation, could damage Riyadh's ties with Western governments. Saudi Arabia's stock index was down 1.7 per cent in afternoon trading on persistent investor concern. U.S. Treasury Secretary Steven Mnuchin and senior ministers from Britain and France pulled out of the event along with chief executives or chairmen of about a dozen big financial firms such as JP Morgan Chase and HSBC, and International Monetary Fund chief Christine Lagarde. NEW DEALS However, Saudi Arabia is set to sign deals worth more than $50 billion on the opening day in the oil, gas, industries and infrastructure sectors with firms such as Trafigura, Total, Hyundai, Norinco, Schlumberger, Halliburton and Baker Hughes. Oil giant Saudi Aramco said it signed 15 memoranda of understandings worth $34 billion. Total Chief Executive Patrick Pouyanné, a panelist on Tuesday, said the French oil and gas producer would announce a retail network in the kingdom with Saudi Aramco. Russia sent a large delegation led by Direct Investment Fund head Kirill Dmitriev, who said Saudi Arabia's economic transformation was "important for the world" and that partnerships between sovereign wealth funds was a "great opportunity". The managing director of the kingdom's sovereign wealth fund, the main backer of the event, said the country was becoming more transparent and that the Saudi Public Investment Fund continued to develop new industries under economic reforms launched by Crown Prince Mohammed bin Salman. Yasir al-Rumayyan said the fund has invested in 50 or 60 firms via SoftBank Group's Vision Fund and would bring most of those businesses to the kingdom. PIF has committed to invest $45 billion in Vision Fund. Many Western banks and other companies, fearful of losing business such as fees from arranging deals for Saudi Arabia's $250 billion sovereign wealth fund, sent lower-level executives even as their top people stayed away. Top executives of Asian firms have been hesitant to pull out, so the participation of Chinese and Japanese institutions may help Riyadh claim the three-day conference as a success. For these reasons, the Western boycott may have little long-term impact on Saudi economic prospects. Foreigners sold a net 4.01 billion riyals ($1.07 billion) of Saudi equities last week, by far the biggest pull-out of overseas money since the stock market opened to direct foreign investment in mid-2015. The event is being held at the Ritz-Carlton in Riyadh, where scores of princes, businessmen and officials were detained in a crackdown on corruption soon after last year's conference ended. Authorities said the crackdown extracted over $100 billion from suspects in financial settlements. But that figure has not been verified, and details of the alleged crimes were never made public, fuelling investors' concern about legal transparency.

Saudi sees deals worth $50 billion at investment conference despite boycotts

OPEC's leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing US President Donald Trump's calls for action to cool the market.

"I do not influence prices," Saudi Energy Minister Khalid al-Falih told reporters as OPEC and non-OPEC energy ministers gathered in Algiers for a meeting that ended with no formal recommendation for any additional supply boost.

Benchmark Brent oil reached $80 a barrel this month, prompting Trump to reiterate on Thursday his demand that the Organization of the Petroleum Exporting Countries lower prices.

The price rally mainly stemmed from a decline in oil exports from OPEC member Iran due to fresh US sanctions.

"We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!" Trump wrote on Twitter.

Falih said Saudi Arabia had spare capacity to raise output but such a move was not required at the moment and might not be needed next year as, according to OPEC's projections, a stellar rise in non-OPEC production could exceed global demand growth.

"The markets are adequately supplied. I don't know of any refiner in the world who is looking for oil and is not able to get it," Falih said, adding that Saudi Arabia could raise output by up to 1.5 million barrels per day (bpd) if needed.

"Given the numbers we saw today, that (an output increase in 2019) is highly unlikely unless we have surprises on the supply and demand," Falih added.

The statement from Trump, meanwhile, was not his first criticism of OPEC.

Higher gasoline prices for US consumers could create a political headache for Republican Trump before mid-term congressional elections in November.

Iran, OPEC's third-largest producer, has accused Trump of orchestrating the oil price rally by imposing sanctions on Tehran and accused its regional arch-rival Saudi Arabia of bowing to US pressure.

On Sunday, Iranian Oil Minister Bijan Zanganeh said Trump's tweet "was the biggest insult to Washington's allies in the Middle East".

SHIFTING FOCUS TO 2019

A mid-term report released by OPEC on Sunday forecast that non-OPEC supply from countries led by the United States would rise by 2.4 million bpd in 2019 while global oil demand should grow by just 1.5 million.

It also steeply raised US oil output growth estimates to 2023, predicting OPEC would lose further market share.

"Our attention is shifting to 2019. We have been briefed on the prospect of 2019 inventory builds which result from significant supply growth from non-member counties," Falih said.

Russian Energy Minister Alexander Novak said no immediate output increase was necessary, although he believed a trade war between China and the United States as well as US sanctions on Iran were creating new challenges for oil markets.

"Oil demand will be declining in the fourth quarter of this year and the first quarter of next year. So far, we have decided to stick to our June agreements," Novak said.

Seeking to reverse a downturn in oil prices that began in 2014, OPEC, Russia and other allies decided in late 2016 to reduce supply by some 1.8 million bpd.

In June this year, however, after months of cutting by more than their pact had called for, largely due to involuntary reductions from Venezuela and other producers, they agreed to boost output by returning to 100 per cent compliance.

That equates to an increase of about 1 million bpd, but the latest data shows they are some way from achieving that target.

IRAN SOFTENS STANCE

In August, OPEC and its allies cut production by 600,000 bpd more than their pact required, mainly as a result of falling output in Iran as customers in Europe and Asia reduced purchases ahead of the US sanctions deadline.

OPEC put Iran's current production at 3.58 million bpd, down some 300,000 bpd from the start of the year, according to OPEC's secondary sources such as researchers and ship-trackers.

Iran's OPEC governor Hossein Kazempour Ardebili insisted on Sunday that Iranian production was steady at 3.8 million bpd but appeared to soften his stance on potential increases in OPEC output.

"If there is a fall not only from Iran, but anybody else, it is the responsibility of OPEC and non-OPEC to balance the market," Kazempour told reporters.

Falih said returning to 100 per cent compliance was the main objective and should be achieved in the next two to three months.

Although he refrained from specifying how that could be done, Saudi Arabia is the only oil producer with significant spare capacity.

"The biggest issue is not with the producing countries, it’s with the refiners, it's with the demand. We in Saudi Arabia have not seen demand for any additional barrel that we did not produce."

The OPEC/non-OPEC monitoring committee next meets on Nov. 11 in Abu Dhabi, followed by a full OPEC gathering at its Vienna headquarters on December 6-7.

OPEC's leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing US President Donald Trump's calls for action to cool the market.

OPEC's leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing US President Donald Trump's calls for action to cool the market. "I do not influence prices," Saudi Energy Minister Khalid al-Falih told reporters as OPEC and non-OPEC energy ministers gathered in Algiers for a meeting that ended with no formal recommendation for any additional supply boost. Benchmark Brent oil reached $80 a barrel this month, prompting Trump to reiterate on Thursday his demand that the Organization of the Petroleum Exporting Countries lower prices. The price rally mainly stemmed from a decline in oil exports from OPEC member Iran due to fresh US sanctions. "We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!" Trump wrote on Twitter. Falih said Saudi Arabia had spare capacity to raise output but such a move was not required at the moment and might not be needed next year as, according to OPEC's projections, a stellar rise in non-OPEC production could exceed global demand growth. "The markets are adequately supplied. I don't know of any refiner in the world who is looking for oil and is not able to get it," Falih said, adding that Saudi Arabia could raise output by up to 1.5 million barrels per day (bpd) if needed. "Given the numbers we saw today, that (an output increase in 2019) is highly unlikely unless we have surprises on the supply and demand," Falih added. The statement from Trump, meanwhile, was not his first criticism of OPEC. Higher gasoline prices for US consumers could create a political headache for Republican Trump before mid-term congressional elections in November. Iran, OPEC's third-largest producer, has accused Trump of orchestrating the oil price rally by imposing sanctions on Tehran and accused its regional arch-rival Saudi Arabia of bowing to US pressure. On Sunday, Iranian Oil Minister Bijan Zanganeh said Trump's tweet "was the biggest insult to Washington's allies in the Middle East". SHIFTING FOCUS TO 2019 A mid-term report released by OPEC on Sunday forecast that non-OPEC supply from countries led by the United States would rise by 2.4 million bpd in 2019 while global oil demand should grow by just 1.5 million. It also steeply raised US oil output growth estimates to 2023, predicting OPEC would lose further market share. "Our attention is shifting to 2019. We have been briefed on the prospect of 2019 inventory builds which result from significant supply growth from non-member counties," Falih said. Russian Energy Minister Alexander Novak said no immediate output increase was necessary, although he believed a trade war between China and the United States as well as US sanctions on Iran were creating new challenges for oil markets. "Oil demand will be declining in the fourth quarter of this year and the first quarter of next year. So far, we have decided to stick to our June agreements," Novak said. Seeking to reverse a downturn in oil prices that began in 2014, OPEC, Russia and other allies decided in late 2016 to reduce supply by some 1.8 million bpd. In June this year, however, after months of cutting by more than their pact had called for, largely due to involuntary reductions from Venezuela and other producers, they agreed to boost output by returning to 100 per cent compliance. That equates to an increase of about 1 million bpd, but the latest data shows they are some way from achieving that target. IRAN SOFTENS STANCE In August, OPEC and its allies cut production by 600,000 bpd more than their pact required, mainly as a result of falling output in Iran as customers in Europe and Asia reduced purchases ahead of the US sanctions deadline. OPEC put Iran's current production at 3.58 million bpd, down some 300,000 bpd from the start of the year, according to OPEC's secondary sources such as researchers and ship-trackers. Iran's OPEC governor Hossein Kazempour Ardebili insisted on Sunday that Iranian production was steady at 3.8 million bpd but appeared to soften his stance on potential increases in OPEC output. "If there is a fall not only from Iran, but anybody else, it is the responsibility of OPEC and non-OPEC to balance the market," Kazempour told reporters. Falih said returning to 100 per cent compliance was the main objective and should be achieved in the next two to three months. Although he refrained from specifying how that could be done, Saudi Arabia is the only oil producer with significant spare capacity. "The biggest issue is not with the producing countries, it’s with the refiners, it's with the demand. We in Saudi Arabia have not seen demand for any additional barrel that we did not produce." The OPEC/non-OPEC monitoring committee next meets on Nov. 11 in Abu Dhabi, followed by a full OPEC gathering at its Vienna headquarters on December 6-7.

OPEC, Russia rebuff Trump's call for immediate oil output boost

State-run Saudi Aramco, the world's top oil company, said on Sunday it has appointed five new members to its board including a female executive, a milestone for Saudi Arabia and the oil industry where there are few women executives.

The appointments come as the Saudi government plans to float around 5 per cent of Aramco in an initial public offering (IPO) later this year or early 2019.

Saudi Arabian Minister of Finance Mohammed al-Jadaan and Minister of Economy and Planning Mohammed al-Tuwaijri were appointed as members of the board of directors, Aramco said in a statement.&nbsp

They are joined by Lynn Laverty Elsenhans, the former chairwoman, president and CEO of US&nbspoil refiner Sunoco Inc&nbspfrom 2008 to 2012.

Elsenhans was named by Forbes as one of the world`s most powerful women in 2008. Prior to her role at Sunoco, Elsenhans was the executive vice president of global manufacturing for Royal Dutch Shell, where she worked for more than 28 years.

She also served on Baker Hughes's board of directors from 2012 to July 2017 and sits on the board of GlaxoSmithKline.&nbsp

The five new members of Aramco's board will join six returning members including Saudi Energy Minister Khalid al-Falih, who is also Aramco's chairman, and Amin Nasser, Aramco's chief executive.

Appointments to the 11-member board of directors are made by the Saudi cabinet.

The outgoing board members are Majid Al-Moneef, advisor to the Saudi Royal Court Khaled al-Sultan, Rector of King Fahd University of Petroleum and Minerals and Peter Woicke, former managing director of the World Bank and former vice president of the International Finance Corporation

The appointments come as the Saudi government plans to float around 5 per cent of Aramco in an initial public offering (IPO) later this year or early 2019

State-run Saudi Aramco, the world's top oil company, said on Sunday it has appointed five new members to its board including a female executive, a milestone for Saudi Arabia and the oil industry where there are few women executives. The appointments come as the Saudi government plans to float around 5 per cent of Aramco in an initial public offering (IPO) later this year or early 2019. Saudi Arabian Minister of Finance Mohammed al-Jadaan and Minister of Economy and Planning Mohammed al-Tuwaijri were appointed as members of the board of directors, Aramco said in a statement. They are joined by Lynn Laverty Elsenhans, the former chairwoman, president and CEO of US&nbspoil refiner Sunoco Inc&nbspfrom 2008 to 2012. Elsenhans was named by Forbes as one of the world`s most powerful women in 2008. Prior to her role at Sunoco, Elsenhans was the executive vice president of global manufacturing for Royal Dutch Shell, where she worked for more than 28 years. She also served on Baker Hughes's board of directors from 2012 to July 2017 and sits on the board of GlaxoSmithKline. The five new members of Aramco's board will join six returning members including Saudi Energy Minister Khalid al-Falih, who is also Aramco's chairman, and Amin Nasser, Aramco's chief executive. Appointments to the 11-member board of directors are made by the Saudi cabinet. The outgoing board members are Majid Al-Moneef, advisor to the Saudi Royal Court Khaled al-Sultan, Rector of King Fahd University of Petroleum and Minerals and Peter Woicke, former managing director of the World Bank and former vice president of the International Finance Corporation

Saudi Aramco appoints first woman to the board

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Saudi Aramco appoints first woman to the board