9 May 2016
Oil jumps towards $46 on Saudi Arabia, Canada fires
Oil has opened over $1 higher in early Asia, currently trading just shy of $46/barrel from $44.58 last Friday close, following news that Saudi Arabia ousted its long-time oil minister Ali Al-Naimi.
Ali Al-Naimi will be replaced by Khalid-al Falih, chairman of the state oil company, Saudi Aramco. As Market Watch reports, "some saw the writing on the wall for al-Naimi after major oil producers failed to reach a deal to freeze production in Doha, Qatar last month."
Meanwhile, the Alberta fires in Canada, may have also intensified fears of reduced supply, with Reuters noting that capacity is much lower than what it should be, as "co-generation power plants in Fort McMurray, Alberta, were operating at about 23 percent of capacity by Sunday afternoon up from around 18 percen tearlier in the day."
Ali Al-Naimi will be replaced by Khalid-al Falih, chairman of the state oil company, Saudi Aramco. As Market Watch reports, "some saw the writing on the wall for al-Naimi after major oil producers failed to reach a deal to freeze production in Doha, Qatar last month."
Meanwhile, the Alberta fires in Canada, may have also intensified fears of reduced supply, with Reuters noting that capacity is much lower than what it should be, as "co-generation power plants in Fort McMurray, Alberta, were operating at about 23 percent of capacity by Sunday afternoon up from around 18 percen tearlier in the day."