Saudi Arabia’s new King Salman, who ascended to the throne on Friday following the death of his brother King Abdullah, will stand by OPEC’s decision not to cut production and keep policies unchanged.
King Salman is expected to continue a policy of keeping oil output steady to drive out rival producers, analysts say.
The International Energy Agency said Friday that “no significant changes” to Saudi oil policies are expected.
“With the death of the king, with the changes (in government), I do not expect any significant change in the oil policy of Saudi Arabia and I expect and hope that they will continue to be a stabilization factor in the oil markets,” Fatih Birol told AFP on the sidelines of the World Economic Forum in Davos, Switzerland.
“I hope they will continue to contribute to the stability of the oil markets … especially in these days where we are going through difficult days,” he added.
However, questions have been raised over Saudi Arabia’s oil minister’s future as the King made a few changes and senior government appointments on Friday.
Current oil minister Ali al-Naimi is likely to stay in his position until current oil-market turbulence subsides, sources close to the matter told the Wall Street Journal.
King Salman “realises how important Naimi is, and how the oil market respects him. So we are unlikely to see a change in the short term,” said the sources.
