Oil continues to rise as the ongoing political purge occurring in Saudi Arabia. The world’s second largest oil producer, Saudi Arabia sent primitive prices two-year highs in the result, U.S. stocks made adequate gains and set more records Monday.
Chipmakers and media companies rose on deal reports but phone and household goods companies dropped. Both energy companies and drilling companies plan to make some of biggest gains.
In 2015 dozens of Saudi princes and senior officials and businessmen were arrested for the claimed involvement in the corruption investigation. After that, U.S. crude oil reached its highest price.
On Monday, the international benchmark, Brent crude oil, passed 64 per barrel, and continues to rise during early European trade on Tuesday.
Connor Campbell, an analyst at Spreadex said, “The black stuff has now crossed $64 per barrel, as commodity investors continue to rub their hands in glee at the potentially disruptive political purge currently underway in Saudi Arabia.”
The crackdown affects dozens of people and the result has reinforced Crown Prince Mohammed bin Salman’s power.
Bank accounts of those people captured in the exclusion were frozen by the kingdom.
President Trump tweeted, “I have great confidence in King Salman and the Crown Prince of Saudi Arabia, and they know exactly what they are doing.”
Any disruption to production in the Saudi Arabia will hugely affect the global balance of supply and demand for the commodity as it is the world’s second largest oil producer.