Economists have assessed the risks of political changes in Saudi Arabia

© RIA Novosti / Alexander Unliterate fotobounce in the city of Riyadh. Archival photoEconomists have assessed the risks of political changes in Saudi Arabia© RIA Novosti / Alexander Unliterate the image Bank

The increase in the reduction of oil production by OPEC countries is now very probably in connection with the change of the crown Prince of Saudi Arabia, writes Bloomberg, citing a research Director at the Gulf Research Center John Sfakianakis (John Sfakianakis).

«The increase in the reduction of oil production by OPEC countries at the present time is a very likely scenario, if oil prices continue to decline,» — says the analyst.

These comments followed after earlier on Wednesday the TV channel «al Arabiya» reported that the Saudi king Salman bin Abdul-Aziz al Saud succeeded to the crown Prince is Mohammed bin Nayef, they will be 31-year-old son of king Mohammed bin Salman. In addition, Mohammed bin Naif lost the post of interior Minister, which passed to the Prince Abdul-Aziz bin Saud bin Naif.

Oil policy of Saudi Arabia suggests that the country will continue to observe the imbalance of supply in the oil market, and if the situation will require further reductions in the production of «black gold», the Saudis will consider taking further action.

OPEC and a number of not members of the organization countries agreed in late 2016 in Vienna on the reduction of its oil production to total 1.8 million barrels per day from October levels, of which 300 thousand are in Russia. The agreement was concluded for the first half of 2017 with possibility of extension. In may, its validity was extended for nine months until the end of March 2018.

© AFP 2017 / Fayez NureldineМинистр defense of Saudi Arabia Prince Mohammed bin SalmanEconomists have assessed the risks of political changes in Saudi Arabia© AFP 2017 / Fayez NureldineМинистр defense of Saudi Arabia Prince Mohammed bin Salman

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