There are suggestions that some institutions are protecting themselves against capital outflows or US sanctions against Riyadh after the disappearance in Istanbul of Khashoggi, who is a prominent critic of Saudi authorities.
US president Donald Trump threatened “severe punishment” for Riyadh if it turned out that Khashoggi was killed in the Saudi consulate in Istanbul, as Turkish officials allege. Saudi Arabia has denied this and on Sunday warned it would counter any sanctions with greater ones of its own.
Oil prices moved only slightly on Monday as analysts said they doubted Saudi Arabia, the world’s biggest exporter of crude, would risk international isolation and damage its own finances by cutting back exports at a time when it is pushing through reforms designed to create jobs and diversify its economy.
In the forwards market, the dollar rose on Monday as high as 100 points against the riyal, a nine-month high, from 54 points on Friday. In 2016, it briefly rose above 1,000 points.
