Is This The Beginning Of The End Of OPEC?

Saudi Arabia is a founding member of the Organization of the Petroleum Exporting Countries (OPEC) and its largest member. So why is the country hinting that it may pursue a future in which the organization is irrelevant? Saudi Arabia has indicated in the past that it no longer cares for OPEC's traditional role of managing supply and output levels for its member states. Instead, the country has adopted a strategy of boosting output to acquire a bigger piece of the market, even at the expense of its own profitability. According to
Saudi Arabia's Deputy Crown Prince Mohammed bin Salman has even gone on the record by stating, "we don't care about oil prices" and $30 oil or $70 oil is "all the same to us." Meanwhile, the country set out an economic plan called "Vision 2030" which calls for a move away from oil based revenue. "The main take-away from Saudi Vision 2030 is that there's just no role for OPEC," Seth Kleinman, head of European energy research at Citigroup Inc. in London previously told Bloomberg. "Or, you can have an OPEC without Saudi Arabia, which just isn't much of an OPEC." Meanwhile, Saudi Arabia's government also suggested it plans on opening up its behemeth oil producing company Saudi Aramco to private investors in the form of a potential IPO. By doing so, the country is essentially turning Saudi Aramco into a "giant oil company" that "OPEC was created to counteract." "The death of OPEC has been long foretold, but it looks like the Saudi 2030 Vision is really the obituary notice," Bloomberg also quoted Kleinman as saying. "The Saudi Aramco IPO, and the presumption that there's going to be a much higher degree of autonomy within Saudi Arabia -- there's no real role for OPEC."

Posted In: BloombergMohammed bin SalmanOPECSaudi ArabiaSeth KleinmanMedia

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.