Oil erased gains in New York following the death of King Abdullah of Saudi Arabia as his successor said policies won’t change in the world’s largest crude exporter.
Brent pared an earlier advance of as much as 2.6 percent in London. Salman Bin Abdulaziz Al Saud, who succeeds Abdullah on the throne, said he would maintain his predecessor’s policies. Oil Minister Ali Al-Naimi, who led OPEC’s November decision to defend market share against surging US shale supplies, remains in his post, according to state-run Saudi Press Agency.
Oil has slumped about 36 percent since the Organisation of Petroleum Exporting Countries’ November 27 accord to maintain production at 30 million barrels a day amid a glut caused in part by the fastest US output in three decades.
Saudi Arabia’s oil strategy is likely to remain unchanged as King Salman assumes power, Fatih Birol, chief economist at the International Energy Agency, said at the World Economic Forum in Davos, Switzerland.
Read also: Oil up towards $108 on as caution on Libya prevails
Brent crude for March settlement advanced 13 cents, or 0.3 percent, to $48.65 a barrel at 9:13 a.m., New York time on the ICE Futures Europe exchange after climbing to $49.80.
The volume of all futures was 5.6 percent above the 100-day average. Brent, used to price more than half the world’s oil, traded at a premium of $3.18 to WTI on the ICE, compared with $1.04 on January 16.
The royal court said Salman, 79, was named king and Prince Muqrin, 69, another half-brother has been chosen as Crown Prince. Salman appointed Prince Mohammed bin Nayef, the country’s Interior Minister, as deputy crown prince and his son Mohammed bin Salman as defense minister, Saudi State Television reported.
Oil Minister Al-Naimi, who has driven decision-making at the ministry since 1995 and turns 80 this year, has said he’d like to devote more time to his other job, chairman of the science and technology university named after the late sovereign.
