http://www.bloomberg.com/news/2015-01-22/oil-surges-after-saudi-media-reports-king-abdullah-s-death.html Oil Surges After Saudi Media Reports King Abdullah’s Death
By Ben Sharples Jan 22, 2015 5:53 PM CT
Oil futures surged in New York after Saudi state media reported the death of King Abdullah.
Futures advanced as much as 3.1 percent in New York after the Saudi Press Agency announced the death, citing a statement from the royal court. Crown Prince Salman will succeed Abdullah as king, according to state television. Saudi Arabia led the Organization of Petroleum Exporting Countries decision to maintain its output quota at a meeting November, exacerbating a global glut that’s driven prices lower.
West Texas Intermediate for March delivery gained as much as $1.45 to $47.76 a barrel in electronic trading on the New York Mercantile Exchange and was at $47.42 at 10:39 a.m. Sydney time. Volume of all futures traded was about 43 percent below the 100-day average. Prices are down 2.6 percent this week.
Oil slumped almost 50 percent last year as the U.S. pumped at the fastest rate in more than three decades and OPEC resisted calls to cut supply. Crude inventories in the U.S., the world’s biggest oil consumer, climbed by 10.1 million barrels through Jan. 16, the Energy Information Administration said Jan. 22. It was the biggest gain since March 2001.
Brent for March settlement fell 51 cents, or 1 percent, to $48.52 a barrel on the London-based ICE Futures Europe exchange on Jan. 22.
