Oil prices rose as news of the death of Saudi Arabia’s King Abdullah bin Abdulaziz left uncertainty in the oil markets.

Saudi is the world’s top oil exporter. Brent crude surged by $1.18 a barrel to reach $49.70, while US crude rose by $1 to touch $47.31, reports Reuters.

French bank Societe Generale was quoted by the news agency saying: "This little spike in prices is understandable. But this is a selling opportunity in our view. It should be sold off quickly and it won’t last long at all."

"Shale production of more than nine million barrels a day turned the US from one of the world’s largest oil importers into one of the top producers."

Brent prices were in the range of $47.78 to $50.45 a barrel after a long period of volatility this week.

The new king of Saudi Salman bin Abdulaziz Al Saud is likely to continue an Organization of the Petroleum Exporting Countries (OPEC) policy of keeping oil production steady to ensure rival producers do not interfere with the cartel’s market share.

As a result of soaring supplies and weak demand, oil prices have reduced by more than half, after hitting a peak in June 2014. Shale production of more than nine million barrels a day turned the US from one of the world’s largest oil importers into one of the top producers.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Several oil producers such as Venezuela urged OPEC to reduce production to prevent decreasing prices.