Crude oil prices edged higher on Monday in the first day of trading after Saudi Arabia’s decision to remove and replace its energy minister, marking a dramatic shake-up at the heart of the oil-producing kingdom’s government.
In early afternoon trading in Asia, brent crude – the international oil marker – gained 1.1 per cent to $62.20. West Texas Intermediate – the US benchmark – added 1.3 per cent to trade at $57.20.
The move to replace Khalid al-Falih, one of the oil industry’s most powerful figures, with Prince Abdulaziz bin Salman, the son of Saudi Arabia’s King Salman, was announced on Sunday.
The decision breaks the long-standing convention that family members are not appointed to the position.
Analysts have said the reshuffle could send shockwaves through the global energy industry at a time when Saudi Arabia — the de facto leader of Opec — and its oil-producing allies have struggled to raise crude prices.
The Saudi economy has struggled with subdued growth amid the slump in oil prices which began in 2015.
Saudi has cut oil production to below 10m barrels per day as part of a deal between Opec and its allies intended to reinforce prices.
Oil prices have fallen by about a quarter since their recent peak, hit in October 2018.
Risk assets including oil and equities were also boosted on Monday by new stimulus measures in China and expectations of lower interest rates in the US, as major economies grapple with a global slowdown that appears to be gaining momentum.
