Saudi King Abdullah dies aged 90, oil prices jump
Saudi Arabia's King Abdullah bin Abdulaziz Al Saud has been confirmed dead at the age of 90, according to state television early on Friday, leading to a big jump in the oil prices owing to speculation over future policy.
The ruler of the globe’s number one oil exporter will be succeeded by his brother, 79-year-old Prince Salman bin Abdulaziz.
The new king, who himself is rumoured to be suffering with dementia and poor health, has immediately appointed his half-brother Muqrin as the next in line to the throne, CNBC said.
Crude prices advanced shortly after the news broke. Saudi Arabia, the biggest crude exporter in the world, was pivotal in the OPEC decision last November not to cut production despite a supply glut which has sent prices to their lowest in five and a half years.
WTI futures rose more than 2% to $47.76 while Brent futures increased to $49.80.
According to Saudi state television reports, King Abdullah’s death was a result of pneumonia and he was hospitalised 31 December.
US President Barack Obama has publicly conveyed his condolences in honour of close US-Saudi ties.
Obama said in a statement: “The closeness and strength of the partnership between our two countries is part of King Abdullah's legacy.”
“As a leader, he was always candid and had the courage of his convictions. One of those convictions was his steadfast and passionate belief in the importance of the US-Saudi relationship as a force for stability and security in the Middle East and beyond."