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Главная » 2015 » Февраль » 21 » eqldq midov for 02% igmxvm5
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to the news of the death of the Custodian of the Two Holy Mosques King Abdullah Bin Abdulaziz, the ruler of the world鈥檚 largest crude exporter and OPEC kingpin Saudi Arabia for almost a decade.The passing of King Abdullah in the early hours of Friday In recent months, OPEC has opted to continue pumping oil in a bid to defend market share rather than cut production and bolster prices. And Saudi Arabia has been the force behind this decision. Some hence questioned: In fact oil prices before the death of the King, after the European Central Bank announced a bigger-than-expected 鈧?.1 trillion bond-buying program aimed at kick-starting the eurozone economy. But news of the King鈥檚 death early on Friday sparked a rally, as uncertainty gripped markets, adding a fear premium to the otherwise bottoming crude market prices.The benchmark US crude But by the time commodity markets opened Friday those gains had been largely erased. In morning trading on Friday, US oil was up 18 cents to $46.49 a barrel, while Brent was up 80 cents to $49.32 a barrel in London. The limited rise in US crude was attributed to a reported buildup of inventory at the Cushing, Oklahoma storage hub and the partial shutdown of an Indiana refinery. A trader said energy data provider Genscape estimated that US crude stockpiles in Cushing, Oklahoma, rose 1.7 million barrels in the week ending Tuesday.Reports of the partial shutdown at BP鈥檚 oil refinery in Whiting, Indiana, also weighed further on US crude. Reports quoting sources familiar with the plant鈥檚 operations said they did not know when the 90,000-barrel-per-day (bpd) crude distillation unit would be restarted.This helped widen the spread between WTI and Brent.However, as expected by most, the spike was only temporary. It had not much to do with fundamentals. Oil prices slipped Friday as investors bet that a change in Saudi Arabia鈥檚 leadership was unlikely to alter the kingdom鈥檚 oil-market policy. The US oil benchmark, which had risen as much as 3.1 percent in overnight trading, turned negative during the morning session, down 21 cents, or 0.4 percent, at $46.10 a barrel on the New York Mercantile Exchange.also helped stabilize the markets. Immediately after taking over, King Salman nominated Prince Muqrin as the Crown Prince. Later in the day on Friday, through a of royal decree, Prince Mohammed bin Naif Bin Abdulaziz was nominated as the deputy crown prince - inducting a grandson of King Abdulaziz directly into the line of throne.The small rise in oil market prices reflected the impact of the transition in Riyadh on the Saudi oil policy.King Salman鈥檚 rapid moves helped clearing the air. Continuity and stability would be the hallmark of his reign, he underlined. Addressing the nation, King Salman made it clear there would be no major deviations from the past. 鈥淲e will, with God鈥檚 support, maintain the straight path that this country has advanced on since its establishment by the late King Abdulaziz,鈥?the new King said in a speech broadcast on state television.The air of uncertainty began to disappear. 鈥淭here is no tangible evidence to suggest that Saudi Arabia in the face of growing US shale oil supply,鈥?Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA, was quoted as saying, adding, King Salman 鈥渨as already actively involved in policy-making.鈥濃€淭here鈥檚 still an overwhelming glut of supply in global markets,鈥?Stephen Schork, president of Schork Group in Villanova, Pennsylvania told the press. 鈥淐ertainly this death matters but it doesn鈥檛 fundamentally change anything. The Saudis are trying to preserve market share and have been quite clear about that.鈥滱lso with the new King continuing to back the veteran Oil Minister Ali Al-Naimi, any possibility of Naimi finally hanging his boots also disappeared. Any hint about the possible departure of Naimi, the architect of the Kingdom鈥檚 current crude policy from the scene would have been a source of uneasiness in the markets. 鈥淣aimi is a market-calming voice, and very well-respected,鈥?Frank Verrastro of the Center for Strategic and International Studies was quoted as saying. 鈥淣aimi will likely stay on during this period of uncertainty.鈥漌ith no changes in the oil ministry, the uncertainty factor receded further. Most analysts hence reached the conclusion that there would not be any major change in the kingdom鈥檚 oil policy - any time soon. And they had their reasons too. 鈥淭here will be no change in Saudi鈥檚 policy whatsoever,鈥?Julian Jessop, global chief economist at Capital Economics was quoted as saying. Analysts now think Saudi production won鈥檛 be lowered anytime soon.And thus the current oil policy, crystallized during the Abdullah era, is all set to continue. In the ongoing battle for market share, Saudi Arabia is not going to blink first. While admitting that Saudi Arabia, deriving 90 percent of its budget from oil and is feeling the pain of the price collapse, Prince Al-Waleed bin Talal, chairman of Kingdom Holdings, speaking to CNBC after the death of King Abdullah, underlined that Saudi Arabia would not be the first to blink. 鈥淭here鈥檚 a game of who should cut production first鈥?between members of the oil organization and non-OPEC nations. 鈥淓ventually there鈥檚 no doubt that some countries have to blink and reduce their production. ... I don鈥檛 see Saudi Arabia or the OPEC countries blinking,鈥?he added authoritatively.Despite the change at top in Riyadh, crude markets are expected to continue to be faced with weak fundamentals, at least for some more time to come. 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