Oil Falls After Saudi Supply Commitment

Oil prices steadied on Wednesday after news that King Salman of Saudi Arabia had altered the kingdom’s line of royal succession in a reshuffle that also affected leadership of the national oil company, Saudi Aramco.

King Salman bin Abdulaziz sacked his younger half-brother as crown prince and appointed his nephew, deputy crown prince Mohammed bin Nayef, as the new heir apparent.

He also made his son, Prince Mohammed bin Salman, deputy crown prince, and appointed Saudi Aramco Chief Executive Khalid al-Falih as chairman of the state oil firm and health minister.

Saudi reshuffles often move oil prices as stability in the world’s biggest oil-exporting country is key to global supplies, but Wednesday’s announcement had little obvious impact.

Brent crude oil LCOc1 was up 15 cents at $64.74 a barrel by 1255 GMT (8.55 a.m. EDT). U.S. crude CLc1 was down 16 cents at $56.90.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza