The market for oil will not be affected by the unexpected arrest of dozens of former Saudi officials and at least 11 Saudi princes in an anti-corruption move, financial analysts say.
It was reported on Sunday that 11 Saudi princes and dozens of incumbent and former government ministers had been arrested in an anti-corruption drive.
Among those who have been arrested is top billionaire Prince Alwaleed bin Talal, who owns the Kingdom Holding Company which has large stakes in businesses and property around the world including Citigroup, Twitter and a number of luxury hotel chains.
It came hours after Saudi King Salman ordered the creation of a new anti-corruption committee led by his son, Crown Prince Mohammed bin Salman, to preserve public money, punish corrupt people and those who exploit their positions.
Analyst Aleksey Korenev of Russian investment brokerage Finam told RIA Novosti that the arrests are unlikely to affect the market for oil, Saudi Arabia's most lucrative export.
“Decisions to reduce oil production or military-political tensions between the Saudis and neighboring countries have the most influence on the financial markets and the oil market. It happens periodically: either they can't come to an agreement with Iraqi or with Syria,” Korenev said.
Alexander Razuvaev, an analyst working at currency brokerage Alpari, said the effect of the move on oil market would be short-lived.
“There isn't likely to be any real reaction on the world markets, all that might happen is some small volatility on the local stock market. The indexes might drop, but this will only be a short-term event,” Razuvaev said.