Why did the price of oil go up

[proud2BlibKansan]

today after King Faud died?

I realize this may be a dumb question, but I don't undrstand why the king's death affects the price of oil.

[Deja Q]

1. Politics. More chicanery. Faud's kiddies don't like the US either, BTW...

[BlueEyedSon]

2. Markets always go up on *uncertainty*

[endarkenment]

3. stability in saudi arabia

Whats his face, Abdullah, the new despot, is 80-something and will not last long. There is serious concern that the 'current arrangement' will not survive this generation of despots.

But not to fear, we've built 14 or so shiny new well fortified military bases in neighboring Iraq for just this sort of contingency.

[punpirate]

4. Combination of things...

The death of Fahd causes some uncertainty about power plays going on in the Saudi royal family, and there were a couple of refinery shutdowns which also affected prices.

[eallen]

5. There is always uncertainty when the old king dies & new one takes power.

The new king might take the death of his predecessor as a time to clean house of underlings he doesn't like, but did not dare dismiss while the old king lived. He might trot out new policies. Monarchial accessions also are a time when a Rasputin has the opportunity to insert himself into the chain of power. And sometimes rival claimants or rebels use the death of an old king as an opportunity to upset the normal transition of power.

If any of this were to happen in Saudi Arabia, it would threaten the world's largest oil supply. Uncertainty drives prices up. That's all there is to it. If things go smoothly for another month or two, the price might decline. Unless something else drives it higher, of course.

[proud2BlibKansan]

7. Thanks

for all the great explanations.

[MercutioATC]

6. When the moon is in the seventh house, and Jupiter aligns with Mars...

...oil prices will go up.....or down....or be unaffected.

Don't try to make sense of it.

[Journeyman]

8. You've heard of a 21 gun salute?. . .

This is a 21 billion barrel salute.

[The_Casual_Observer]

9. If the royal family thing collapses is would be a different world.

The price of oil would double at least.

[MidnightWind]

10. But hasn't the new King been the defacto leader of Saudia Arabia

for the past 10 years since King Faud's stroke anyway? What's going to change now that he's officially the new king?

[proud2BlibKansan]

11. The price of oil will go up

I lurned that right here on this thread :)