Oil market participants were assessing on Wednesday the potential impact upon the world’s most traded commodity of the momentous overnight leadership change announced within Saudi Arabia’s ruling family.
Early Wednesday, Saudi’s King Salman unveiled his decision to relieve 57-year old Interior Minister Muhammad bin Nayef of his position as crown prince in favor of his 31-year old son, Deputy Crown Prince and Defense Minister Mohammad bin Salman.
Although Bin Salman has a reputation for interacting in an impulsive and often abrasive manner, particularly with regards to international relations, Amrita Sen, chief oil analyst at Energy Aspects, does not anticipate the newly appointed heir to the Saudi throne rushing to reconfigure the country’s current strategy for oil.
“Even if foreign policy were to remain aggressive, we don’t see any change in oil policy yet. If anything, with the initial public offering (IPO) the center stage, the Kingdom needs higher prices,” she told CNBC via email on Wednesday, referring to the public listing of Aramco, Saudi’s national oil and gas company, planned for 2018.