The news of the death of Saudi King Abdullah has brought a new controversial policy in Saudi Arabia, the world’s second-largest producer of crude oil, that the country’s King Abdullah death certainly has the potential to shake up global oil markets.
Shortly after Abdullah’s death was announced on state television, the price of West Texas Intermediate crude traded in the United States jumped roughly 2 percent, to $47 per barrel.
As the rest of the world is oversupplied with crude, whether Saudi Arabia might alter its controversial policy of keeping oil output high? This is surely a key question which has been raised in the minds of people.
It is pertinent to mention here that these low prices of oil are also putting a dent in the country’s budget, and the stance has attracted criticism from some members of the royal family.
According to several analysts, Abdullah’s death has explicitly backed the country’s oil policy. And the newly announced king, Salman bin Abdel-Aziz also backing this policy, although he is himself 79 years old. Indeed, there may be some commotion in terms of what will come next.