Saudi Arabia's oil minister is out in a major shake-up

Why it matters: The move comes as the kingdom is grappling with the rise of U.S. production and other forces that have held down the price of oil, the country's dominant revenue source.

• It also comes amid revived preparations for the IPO of state oil giant Aramco.
• The royal decree replacing al-Falih arrives just days after he was removed as board chairman of Aramco.

The big picture: Al-Falih, who was appointed in 2016, has been among the most prominent figures in global oil markets. During his tenure, OPEC began a joint production-limiting pact with Russia in an effort to tighten up global markets — an ongoing agreement that has had mixed results.

• Per the Financial Times ($), "Abdulaziz, the new energy minister, joined the oil ministry in the 1980s and served in several positions including deputy minister and most recently as minister of state for energy affairs, a position he held since 2017."

Go deeper: Saudi Aramco replaces chairman as oil giant prepares for massive IPO