The price of Brent crude exceeded $46 for the background of the dismissal of Saudi oil Minister


At the opening of trading on the London exchange ICE on Monday, may 9, the price of a barrel of Brent crude oil reached $46 a barrel. Friday’s trading closed at $45,37. At the maximum (at 01:31 GMT) Brent crude oil for July was worth $46,48, and later was a rebound and as of 06:40 GMT Brent is trading at $45,81.

The growth of quotations, according to the Agency Bloomberg, comes amid fires in the downtown area for the extraction of oil from tar Sands in Alberta, Canada and news about the resignation of the Minister of oil of Saudi Arabia Ali an-Nuaimi.

“Market shows caution due to the canadian fires and maintains the prices are a little higher, considering it’s a fire fires occur in close proximity to the main production of the region”, — said the Agency Bloomberg David Lennox, analyst at Fat Prophets in Sydney Fat.

The Financial Times previously reported with reference to analysts of the British consulting firm Energy Aspects that forest fires in Alberta have led to reduced supplies from this region to 800 thousand Barr./day. According to analysts, “the situation remains unstable and we can expect further interruptions”.

According to David Lennox, market influences and the situation in Riyadh. “There is no doubt that the policy of Saudi Arabia is working, we are seeing a reduction in US production. The situation with the reserves is probably not going to allow a serious rally,” said the analyst.

The dismissal of Saudi oil Minister took place on Saturday, may 7, as part of a major reshuffle in the Saudi government approved background at the end of April of the program of development of the country. The son of the Saudi king Mohammed bin Salman after the adoption of this plan stated that by 2020 Saudi Arabia will be able to live without oil”.

At the same time, as noted by The Wall Street Journal, the sharp rise in oil prices after the appointment of the new Minister of energy in Saudi Arabia came as a surprise to some experts, who had expected a drop in prices after the Department was headed by Khalid al-falih, head of the oil company Saudi Aramco.

Several OPEC sources told the WSJ that the appointment of al-falih may indicate a deeper politicization of the oil strategy of the Kingdom, aimed at neutralizing its rival Iran.

“Iran has always been a competitor for Saudi Arabia, even during the sanctions [imposed by Western countries against Tehran], when Iran was still exporting over 1 million barrels of oil per day to Asia”, — explained the edition, the head of research at Energy Aspects Amrita Sen.

Another reason for the jump in oil prices at the opening of trading on Monday, the WSJ calls the data on the growth of oil imports to China, on Sunday presented the customs administration of the country. China in April imported of 32.58 million tonnes of oil, equivalent of 7.96 million barrels per day. This figure is 3.2% higher in comparison with data for the previous month and near record level of 8.04 million barrels reported in February.