Smooth Saudi succession will calm oil markets'
DUBAI — Kuwait said yesterday that it expected the smooth succession in neighbouring Saudi Arabia to restore calm to world oil markets after the rise in prices prompted by King Fahd’s death.
“Everyone knows that Saudi Arabia is the biggest oil-producing country and there might be an immediate upward move in the price of the barrel, which is a matter that reflects the importance of Saudi Arabia,” said Energy Minister Shaikh Ahmed Fahd Al Ahmed Al Sabah.
“Undoubtedly, there will be fears in the market at this point, and until the situation becomes clear,” Shaikh Ahmed told Dubai-based satellite channel Al Arabiya.
But he expressed confidence that prices would fall back following the swift succession of King Abdullah and his appointment of Prince Sultan as next in line.
“The pledge of allegiance to Crown Prince Abdullah ... will give confidence,” the Kuwaiti minister said.
“And as they will go on the same path, the situation will be calmer after this sad news.”
New York’s main contract, light sweet crude for delivery in September, climbed 57 cents to $61.14 in electronic dealing yesterday.
In London, the price of Brent North Sea crude oil for delivery in September gained 54 cents to $59.91 per barrel.