energy sector and is seen as a safe and steady choice to lead the ministry, where he will oversee production of one of the world's largest oil exporters. He has held senior roles in the energy ministry for more than three decades and most recently was minister of state for energy affairs.

Despite now getting the top role overseeing Saudi Arabia's energy portfolio, Prince Abdulaziz is not known to be close to Prince Mohammed, the king's most powerful son and heir to the throne.

His appointment marks the first time a Saudi prince from the ruling Al Saud family heads the important energy ministry.

The move comes as Brent crude oil trades under $60 a barrel, well below the $80-$85 range that analysts say is needed to balance the Saudi budget.

Al-Falih'sposition, from where he oversaw some 60% of the Saudi economy, had been diminished in recent days. It signaled a possible rift with the crown prince over his management of various issues, including reportedly moving too slowly in advancing Prince Mohammed's plan to sell shares in the state-owned oil company Aramco.

Al-Falih was removed just days ago from his post as board chairman of Aramco, a company that he once ran as chief executive. Al-Falih's Cabinet portfolio was also curtailed last month when mining and industry were spun off from his purview into a new ministry, in an attempt to focus on more effectively attracting foreign direct investment into these sectors.

Al-Falih's diminishing role had led to reports that he was out of favor with Prince Mohammed, who is pushing