News of the death of Saudi Arabia’s king Abdullah lifted crudes prices somewhat, though the expectation it will be oil business as usual meant market speculation has been at a minimum.
As Salman, Abdullah’s brother, becomes king it is understood he will keep in place oil minister Al-Naimi. Salman, aged 79, has also named the next heir as half-brother Muqrin, a move which averts any further uncertainty over future succession.
On one hand, markets were reassured that there would not be any major disruption.
Short lived, however, were any thoughts that the new King’s rein could spark a turning point in the currently oil supply stand-off.
Saudi Arabia and Al-Naimi are the drivers behind OPEC’s newfound laisse faire attitude to crude supply - opting instead to protect its market share by cutting prices and undercutting more expensive, non-OPEC production.
In London trading Brent crude futures rose 1.2% to trade at US$49.15, while West Texas Intermediary futures dipped to US$46.20 per barrel.