Gulf | Saudi Arabia

No change expected to Saudi oil policy

Although oil prices leapt to over $61 a barrel on Monday after the death of the King Fadh, analysts and officials say Riyadh will ensure market stability.

  • Agencies
  • Published: 23:31 May 3, 2009
  • Gulf News

Although oil prices leapt to over $61 a barrel on Monday after the death of the King Fadh, analysts and officials say Riyadh will ensure market stability.

"Riyadh will keep oil outputs at levels required to ensure market stability," a senior Saudi oil official told reporters after the announcement of the death of King Fahd.

Crown Prince Abdullah, who will be the next king is expected to keep Saudi Arabia's long-standing oil policy unchanged aimed at ensuring global markets are well supplied, a Saudi source said on Monday.

"I am sure nothing will change regarding Saudi Arabia's oil policy," the Saudi source told reporters.

"It's not going to have a great deal of effect because Crown Prince Abdullah has been effectively running the country for several years," said Geoff Pyne, Energy Consultant to Standard Bank.

Analysts also saw any changes in Saudi policy as unlikely, and expected the price impact to be minimal.

"It could have a psychological effect on markets. Anything which adds uncertainty to the market could be construed as bullish in the short-term."

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