The rate of oil rose after reports of the resignation of Khalid al-falikha

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On Monday, oil prices are rising on the news about the change of the Minister of energy in Saudi Arabia. The king dismissed Khalid al-falikha, who was the author of the transaction OPEC+ and the head of the Russian-Saudi intergovernmental Commission. On August 30 he gradually lost leverage: from the name of his Department was gone, the words “industry and mineral resources”, and in early September, the Minister lost his post of Chairman of the Board of Directors of the state oil company Saudi Aramco. In 2020 it is planned the company’s IPO, which is expected to be the largest in history – it is estimated at 2 trillion dollars.
Most likely the king of Saudi Arabia were dissatisfied with the failure of the policy to retain high prices for raw materials, which should prevent profitable to sell a stake of Saudi Aramco investors. Thus, market participants hope the new measures to reduce the supply of oil on the market and further price increases.
Additional support to quotations render the continued decline in the number of active drilling rigs in the US last week, they fell by another 4 units – 738 pieces. In the absence of a negative oil may rise to 62,50 dollars per barrel, but further upside in the current environment, it seems unlikely.
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Gennady Nikolaev
Expert
Academy of management Finance and investment