Oil jumps above $61 after Fahd death
AFP, London
World oil prices jumped above 61 dollars per barrel on Monday, although the death of King Fahd of Saudi Arabia, whose country is the world's biggest oil exporter, would be unlikely to cause major supply disruptions, one London trader said. New York's main contract, light sweet crude for delivery in September, climbed 57 cents to 61.14 dollars in electronic dealing. In London, the price of Brent North Sea crude oil for delivery in September gained 54 cents to 59.91 dollars per barrel. One London trader, who did not wish to be named, said Fahd's death on Monday was providing a little support for prices. He said of the royal death: "It certainly won't change the Saudis' view on how to export. The internal politics might change a bit but on the oil side I don't think there is going to be a change at all." King Fahd, who was believed to be 84, had been ill for many years. Following his death, a senior Saudi oil official told AFP that Saudi Arabia would maintain output at levels required to ensure market stability. Abdullah bin Abdul Aziz, the popular crown prince of Saudi Arabia, has been named ruler of the kingdom following the passing of his half-brother. Oil prices had already risen above 61 dollars per barrel in Asian trade on Monday, as last week's explosion at a BP refinery in Texas continued to cause concerns about supplies towards the end of the year, dealers said. A fire hit BP's Texas City refinery last week, triggering a run-up in crude prices with the September contract touching 61 dollars for the first time since July 13.
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