Oil languishes near multi-month lows on glut fears & Saudi Arabia appoints new crown prince: analyst reaction

Record ID: 896429

  • Title: Oil languishes near multi-month lows on glut fears & Saudi Arabia appoints new crown prince: analyst reaction
  • Date: 21st June 2017
  • Summary: LONDON, ENGLAND, UK (JUNE 21, 2017) (REUTERS) (SOUNDBITE) (English) LCG SENIOR ANALYST, JASPER LAWLER, SAYING: "He's (Crown Prince Mohammed bin Salman) quite hawkish on foreign policy. Quite hostile, you could say, towards Iran. And also is in control of this general policy to diversify the Saudi economy away from oil. So, putting all that together, I think it makes the sustainability of the OPEC agreement a bit less likely over the medium term because of the tensions with Iran. And because there's a general desire here to shift away from oil, it takes the emphasis away from OPEC. And so if anything I would say, it puts downward pressure on oil prices. And as we've seen over the last few days, when oil prices really come under pressure that affects global assets in general."
  • Embargoed: 5th July 2017 13:27
  • Keywords: saudi oil opec Mohammed bin Salman mbs
  • Location: LONDON, ENGLAND, UK / SAUDI ARABIA
  • City: LONDON, ENGLAND, UK / SAUDI ARABIA
  • Country: Saudi Arabia
  • Topics: Commodities Markets,Economic Events
  • Reuters ID: LVA0046M7ZIO7
  • Aspect Ratio: 16:9
  • Story Text: Oil prices held near multi-month lows on Wednesday (June 21) as investors discounted evidence of strong compliance by OPEC and non-OPEC oil producers with a deal to cut a global output.
    Global benchmark Brent was unchanged at $46.02 barrel at 0651 GMT after falling nearly 2 percent in the previous session to its lowest settlement since November.
    U.S. crude futures for August were trading up 4 cents at $43.55, after spending much of the day slightly lower and falling more than 2 percent on Tuesday to the lowest since September.
    Compliance with an agreement by the Organization of the Petroleum Exporting Countries and other producers to cut output by 1.8 million barrels per day (bpd) for six months from January reached its highest in May since curbs were agreed last year.
    OPEC's largest producer, Saudi Arabia, meanwhile, announced a new crown prince.
    Saudi Arabia's King Salman made his son his successor on Wednesday, removing his nephew as crown prince and giving the 31-year old almost unprecedented powers as the world's leading oil exporter implements transformational reforms.
    A royal decree appointed Mohammed bin Salman crown prince and deputy prime minister. He retains defence, oil and other portfolios.
    Although Mohammed bin Salman's promotion was expected among close circles it came as a surprise at a time the kingdom is facing heightened tensions with Qatar and Iran and is locked in a war in Yemen.
  • Copyright Holder: REUTERS
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