Al-Falih: Vision 2030 will lead to stronger and more robust Saudi Arabia

 Saudi Vision 2030 will lead to a stronger and more robust Saudi Arabia, said Saudi Energy, Industry and Mineral Resources Minister Khalid Al-Falih. 

Saudi Vision 2030 includes the planned IPO of a portion of Saudi Aramco, the biggest such offering in history, he said.
Whatever the oil price, Saudi Arabia is in good shape to implement its reform vision to transform the structure of its crude-based economy by 2030, said the minister.
Al-Falih made these remarks during his opening keynote speech at the World Energy Congress in Istanbul.
World Energy Congress in Istanbul brings together players across the energy sector to discuss a transformation of the sector.
The minister admitted that the Kingdom had become “a little fat around the belly, a bit complacent” during the era of high oil prices but was now fully committed to its economic reform program set out by Deputy Crown Prince Mohammed bin Salman.
“The Kingdom will be prepared to deal with whatever price emerges,” he said.
The minister said he believed that demand for oil would peak but “if it does happen we will be ready for it.”
Al-Falih said it is “not unthinkable” that the price of crude oil could surge to $60 a barrel by the end of the year but warned against drastic production cuts that might 
For months pressured by concerns of slack demand amid a global economic slowdown at a time of a glut in supply, US oil rose above $50 a barrel in New York last week for the first time since June.
This came after Saudi last month agreed to a surprise output cut of oil cartel OPEC, the first in eight years.
“We are seeing the convergence of supply and demand,” said Al-Falih. 
“It is not unthinkable we could see $60 (a barrel) by the year end.
“But my eyes are not on the price but on supply and demand.”
He added: “OPEC should make sure not to crimp too tightly and create a shock to the market. We do not want to shock the markets into a process that could be harmful.”
He said: “Prices have dropped too low and that has impacted investment. Many companies and countries are hurting... we don’t want to give the market the wrong signal.”
Al-Falih said Saudi Arabia would be prepared to deal with whatever price may emerge.
“We have economic and fiscal plans to deal with very low (price) scenarios and moderate price scenarios,” he said.
Al-Falih said he would meet Russian Energy Minister Alexander Novak in Istanbul in the coming days to discuss Russia’s reaction to the Algiers agreement, and that a technical committee meeting between OPEC members and non-OPEC countries would take place in two weeks.
OPEC officials are embarking on a flurry of meetings to nail down details of the deal in Algiers, where modest oil output cuts were agreed in the first such deal since 2008.
The chain of meetings, which are starting in Istanbul, signal that unlike in the first half of 2016, the exporting group is more serious now about managing the global supply glut and propping up prices.
“It is time to do something different than we faced in 2014. It is a very gentle hand on the wheel, we are not doing anything dramatic,” Al-Falih said. 
“The difference is that the market forces have shifted significantly between 2014 and now.”
He said there was still not total clarity on supply and demand in some areas such as China and North America at the moment and that he hoped the situation would be clearer by the time of OPEC’s November meeting.
Citing Novak, Russia’s Energy Ministry said on Friday it expected an output freeze deal could be reached before the OPEC meeting on Nov. 30..
No decision is expected in Istanbul, OPEC sources have said. 
But the meeting will be a chance for officials to discuss the next step after the Algiers deal, which was agreed after intensive shuttle diplomacy.

Source: Arab News