Saudis reassure oil markets as Fahd dies

Saudi officials on Monday reassured markets that there would be no change in oil policy as they engineered a smooth handover of power after the death of King Fahd, who ruled the world’s most powerful crude producer for 23 years.

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Oil analysts predicted no short-term shift in the kingdom’s oil policy. Traditionally driven by a balancing of domestic needs and the demands of consumers, Saudi oil policy has more recently favoured higher oil prices, which have helped ease domestic economic pressures.

Ali Naimi, the oil minister, has hinted that its target oil price was in the range of $40-$50, much higher than the $25 he had long insisted was the Saudi objective.

Financial Times