Oil at record above $62 after Fahd dies

[UpInArms]

http://www.marketwatch.com/news/story.asp?guid=%7BBBCB8EE6%2D99B2%2D4C37%2D9820%2D47C0A533EDC6%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Crude-oil futures closed almost 2% higher Monday, after trading well above $62 a barrel -- a first for a benchmark contract as the death of Saudi Arabia's king sparked fresh anxiety over the stability of the world's top oil producer and exporter.

King Fahd bin Abdul Aziz, who was thought to be in his 80s, died early Monday.

Saudi television reported that Abdullah bin Abdulaziz Al-Saud, King Fahd's half-brother, would succeed him. Abdullah has effectively run the kingdom since Fahd suffered a stroke in 1995. See full story.

Fahd's death "sparked uncertainty as to the course of succession and political stability of the country now that he is gone," said Tim Evans, a senior analyst at IFR Markets.

Following the news, crude for September delivery traded as high as $62.30 a barrel on the New York Mercantile Exchange before closing at $61.57, up $1, or 1.7%.

Prices topped the record for a benchmark contract, which was last seen July 8 at $61.90 for the August contract. The September contract climbed as high as $62.80 that day.

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[pitohui]

1. he's been brain-dead for a decade

this is frank price-gouging

the man has been suffering from admitted dementia since the mid 90s

the market should have taken this into acct yrs ago

[Greeby]

2. Dementia?

Why didn't he do the visits to Crawford then? Shrub would be in good company :evilgrin:

[happyslug]

3. The problem is NOT Fahd, but that Abdullah is now KING

With Abdullah KING not Crown prince he has the official power to change the direction of the Kingdom as opposed to dealing with just the day to day issues of Ruling. Abdulah is NO longer a caretaker but the actual ruler and we will see what he does NOW.

On the other hand he is old, in many ways to old to make the needed radical changes needed in Arabia. While he is more conservative than his 1/2 brothers (and other relatives) he is viewed as honest (unlike the rest of the Family). The next question is was the recent "retirement" of the Saudi Ambassador to the US related to Abdullah becoming king? Timing is close enough that the one might have lead to the other (or the first had to occur before the second could happen).

Lets do some House of Saud Watching, it be like watching the old Politburo of the Old Soviet Union. For example trying to figure out who is on the outs by the fact Stalin shook every Politburo's member's hand but one (who was later executed). Interesting, and given the peak oil situation more dangerous than who ruled in Moscow during the COld War.