Crude oil prices fell to the lowest level in six years on Monday, after Saudi Arabia decided to leave its oil policy unchanged under the leadership of the new King Salman bin Abdulaziz.
The new Saudi monarch Salman bin Abdulaziz said in his first speech that he is keeping the policies on both political and economic levels unchanged, and decided to leave Ali al-Naimi as the Saudi oil Minister in a sign of satisfaction with the policy of the kingdom.
On the other hand, oil prices were also pressured by the victory of the radical left wing party Syriza, opposing austerity policies and rescue packages set by the International Monetary Fund and European Union, which raised concerns over Greece’s future in the euro zone.
Oil prices are expected to continue declining in the near term in light of the abovementioned factors, as well as the ongoing weak demand against supply glut in global markets.
Crude oil dropped around $44.36 a barrel— levels not seen since March 2009— while futures traded around $44.96 a barrel at 09:17 GMT.