Oil Prices Probably Won't Keep Gains Made After Death of Saudi King - Bloomberg

Oil Prices Probably Won't Keep Gains Made After Death of Saudi King - Bloomberg:



"The increase in oil prices after the death of Saudi Arabia’s King Abdullah will probably be temporary amid an oversupply in the crude market.



Brent, the global oil benchmark, climbed as much as 2.6 percent and U.S. marker WTI jumped 3.1 percent after the king’s death was announced by Saudi royal court. Crown Prince Salman bin Abdulaziz, Abdullah’s half-brother who will succeed him, is seen sticking to the oil policy of the world’s biggest crude exporter.



Saudi Arabia, OPEC’s biggest producer, has led the group’s strategy of maintaining production quotas amid a 58 percent drop in crude since its peak in June. While smaller producers including Venezuela called for action to prop up prices, Saudi Oil Minister Ali al-Naimi highlighted the need to preserve market share as global demand slows and the U.S. pumps the most since 1983."



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