Oil rises after death of Saudi king, but effect seen muted

ByJonathan Fahey, AP Energy Writer

In this Monday, Nov. 22, 2010 file photo released by the Saudi Press Agency, Saudi Arabia's King Abdullah, left, speaks with Prince Salman, the Saudi King's brother and Riyadh governor, right, before the king's departure to United States, in Riyadh, Saudi Arabia. On early Friday, Jan. 23, 2015, Saudi state TV reported King Abdullah died at the age of 90. (AP Photo/Saudi Press Agency, File)
Copyright 2014, The Associated Press

NEW YORK (AP) — Oil prices rose on the news of the death of Saudi Arabia's King Abdullah Thursday, but the king's death is not expected to change the course of oil prices over the next several months.

The price of U.S. crude was up $1.07, or 2.3 percent, to $47.38 a barrel in after-hours trading. Brent crude, an international benchmark, was up 1 percent to $49 a barrel.

Oil prices have plummeted nearly 60 percent since June as global supplies have soared. Saudi Arabia has so far declined to call for a cut in production by OPEC members that could reverse the price decline.

Analysts expect Saudi oil minister Ali Al-Naimi to remain in his position for at least the next several months and for Saudi Arabia's export policy to remain the same.

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