Events seem to trigger on a circle, or at least that would be what Ali al-Naimi would think if he reviewed his time as the oil minister of Saudi Arabia.
After 2 years of the promotion of Ali al-Naimi, a technocrat, to the office of the oil ministry of Saudi Arabia to take the title of the kingdom’s 4th oil minister in forty years, Ali pushed through a deal in Indonesia that went sour, a deal with the Organization of the Petroleum Exporting Countries to lift Supply when Asia began hitting an economic tailspin.
The decision that meant to serve as punishment for Venezuela and its output quota that just kept on floating backfired and Oil prices hit a mere ten dollars a barrel.
After 20 years have passed, Naimi has another crisis on his hands which are lowering the oil prices at the lowest position in 6 years, sitting below forty dollars per barrel.
The crash today was also designed by Naimi, in order to defend Saudi’s oil market share against the United States and their supply.
Naimi’s predecessor, the ex-minister Sheikh Yamani, was asked to leave in 86, when he reduced Saudi’s output to try and fight a price collapse. The measure triggered downturns in prices and Naimi has been doing quite the opposite, taking advantage of Saudi’s huge supply to scare rivals away because of their higher costs.
A seasoned OPEC watcher, Gary Ross, claimed that Naimi wanted to avoid his predecessor’s mistake at all costs. Instead of cutting his supply isolated, the minister always tries to get reliable allies to work with.
Saudi Arabia’s oil sources now state that their minister will find partners to work with or stick to the high output tactics he likes to employ.