New Saudi oil boss seen chasing record output to fight shale

Dubai

SAUDI Arabia will probably keep producing crude at near-record levels under its newly appointed oil minister, Khalid Al-Falih, as the world's largest exporter sticks with his predecessor's policy of defending market share against higher-cost shale.

Mr Al-Falih, also chairman of the state producer Saudi Arabian Oil Co, said on his first day in office on Sunday that he will maintain the kingdom's oil policy. His predecessor, Ali al-Naimi, had been leading a policy prioritising sales over prices since 2014, driving some higher-cost producers, including US shale drillers, off the market. In so doing, Saudi Arabia boosted output, adding to a supply glut.

The strategy is showing signs of succeeding this year, with prices gaining more than 60 per cent since tumbling to a 12-year low in January. Saudi Arabia could exceed its record output of more than 10.5 million daily barrels if it pumps more to meet a seasonal surge in domestic demand during the summer months, analysts from Emirates NBD PJSC and Qamar Energy said. The country, with the world's second-largest oil reserves, pumpe…