Oil prices went above $61 a barrel to a three-week high on Monday after the demise of Saudi Arabia's King Fahd, but industry players did not expect his death would have a major impact on the already troublesome market market.
On his part, Iranian Oil Minister Bijan Namdar Zanganeh said Monday that oil price will not undergo a big change following the death of King Fahd. The death of Fahd may fluctuate the oil market for only some hours, but it will not greatly affect the market, the Iranian minister told reporters. Crown Prince Abdullah is adopting Saudi Arabia's policies, he noted.
Similar remarks were made by the kingdom's next ambassador to the United States and outgoing ambassador to Britain, Prince Turki al-Faisal, who told reporters in London: "I cannot imagine there will be any particular change (in oil and foreign policy)."
With one-fourth of the world's proven oil reserves and some of the lowest production costs, Saudi Arabia is likely to remain the world's largest net oil exporter for the foreseeable future.
