To calm the energy market, Saudi Arabia’s new King Salman has vowed to maintain existing policies.
Shortly after the news of King Abdullah’s death on Friday 23 January the price of Brent crude increased by 2.4%, as markets speculated on changes to Saudi’s oil policy.
Prices quickly settled, however, following King Salman’s pledge for continuity, which included a royal decree retaining all the kingdom’s current ministers.
Having joined Saudi Aramco aged 12 and rising to become CEO, Ali al-Naimi is likely to keep his position as Saudi’s oil minister – at least until the market calms.
Majid Jafar, chief executive of UAE-headquartered oil and gas producer Crescent Petroleum, said: “Oil markets will take comfort from the speed and stability of the succession process, and the announced pledge for continuity of policy.”