Saudis ill-prepared to handle oil attack disruption | Financial Times

Saudis ill-prepared to handle oil attack disruption | Financial Times:

With new leadership in both its oil company and the energy ministry, Saudi Arabia is ill-equipped to deal with the disruption that will follow Saturday’s attack by rebels in Yemen on the facilities at Abqaiq which handle the bulk of Saudi oil production and exports.

The sacking of Khalid al-Falih as Saudi Arabia’s energy minister and Saudi Aramco chairman is a disastrous mistake for the company and a signal of the erosion of the country’s role as a source of stability in the Middle East. It came just before the attack exposed the continuing vulnerability of the oil market to events in the region. 


Mr Falih has long been recognised as an exceptional individual. Under his leadership, Aramco confirmed its position as the most efficient producer of the Opec state oil companies. As energy minister since 2016, he edged Saudi Arabia into a pragmatic role in the oil market, steering agreements on production quotas despite the political complexities inherent in a cartel that includes both Iran and Iraq.