Oil prices went up following the news that Malek Abdullah had passed away. Reports indicate that the rise in prices is temporary and Saudi Arabian oil policies will not change before the OPEC meeting in June.
The announcement of the Saudi royal death on Friday January 23 was followed by a 2.6 percent increase in the price of Brent oil, the benchmark for global oil prices, while the U.S. marker, the West Texas intermediate, also went up by 3.1 percent, Bloomberg reports.
The new king is the half-brother of the deceased Malek Abdullah and has announced on national television that he will maintain his predecessor’s policies. Oil Minister Ali Al-Naimi will also remain in his post.
Saudi Arabia, OPEC’s largest oil producer, has maintained a policy of high production and refused recommendations by countries such as Iran and Venezuela to reduce production in an attempt to control oil prices.