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Report by Deepta Bolaky
A buoyant open on Oil markets this week amidst clampdown on corruption. The sudden arrests of a dozen princes, business tycoons and top officials in Saudi Arabia has caused a rally in oil prices, hitting a 2-year high.
Source: GO Markets MT4
It is reported that private airports were closed to prevent jets being used for any escape swiftly after King Salman ordered the arrests. A new anti-corruption commission has been set up and is being led by King Salman’s 32- year old son, Crown Prince Mohammed bin Salman.
The Crown Prince has been praised for his young and fresh attitude towards politics and has shown his determination in shifting Saudi Arabia away from its heavy dependence on oil. He demonstrated commitment towards foreign and social policy and has played a leading role in removing the ban on female drivers.
However, the Prince’s rapid rise in power, austerity measures and recent arrests have reportedly raised concerns over his motives, particularly within his own royal family. The crackdown came at a time when Saudi Arabia also intercepted a ballistic missile over Riyadh.
Iran was accused of supplying the weapon fired towards Riyadh’s airport. Whilst the war of words has escalated between the two countries since the weekend, putting pressure on oil prices, major US indices appear to be subdued, partly because markets were more focused on tax reforms.
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