Julian Lee, Columnist

What the Saudi Arrests Mean for the Kingdom's Oil Policy

And how the anti-corruption drive might wind up supporting the Aramco IPO.

November 12, 2017 at 8:00 AM UTC

Julian Lee is an oil strategist for Bloomberg. Previously, he was a senior analyst at the Centre for Global Energy Studies.

SAUDI-ECONOMY-OIL-ENERGY-INVESTMENTS — FAYEZ NURELDINE/AFP/Getty Images

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We may never fully know what lies behind Crown Prince Mohammed bin Salman's decision to arrest more than 200 Saudi citizens, including 11 princes and four government ministers, on corruption charges, just as tensions with Iran are escalating.

What we do know is that his move simultaneously boosted the oil price and undermined the attractiveness of Aramco to potential foreign investors. But it would be a mistake to conclude that this political decision also heralds a shift in Saudi oil policy, or permanently damages the prospects of the state oil company's IPO.