Futures spike on death of Saudi king

Crude oil prices rose above $61 per barrel on Monday after Saudi Arabia reported the death of King Fahd.

Prices for West Texas Intermediate crude were up to $61.23 at one point during the day, but remained below the all-time high of $62.10, which was reached on July 7.

The death of the Saudi Arabian king was not the only factor in Monday’s price hikes, with refinery problems in the United States causing more concerns that strong demands might not be able to be met.

Saudi Arabia’s long-held oil policy has been to keep the world’s markets well-supplied. Some called the rise in prices on Monday after the announcement of the king’s death “psychological” in nature.

He will be succeeded by Crown Prince Abdullah, his half brother, who has been acting ruler since King Fahd suffered a stroke in 1995.