Oil prices hit two-year high at $62.59-FINANCIAL TIMES

Oil prices hit a two-year high on Monday as Saudi Arabia’s anti-corruption probe widened with the reported arrest of the founder of one of the kingdom’s largest travel companies. Nasser al-Tayyar, founder of the Al-Tayyar Travel Group, was detained as part of the campaign shaking up the kingdom, according to local media reports on Sunday. The move followed the weekend arrests of at least 11 Saudi Arabian princes and dozens of senior officials and prominent businessmen by the country’s new anti-corruption commission.

Brent crude was up 0.4 per cent at $62.32 a barrel on Monday — its highest level since July 2015 — as uncertainty over the situation in Riyadh added to other factors putting upward pressure on prices. Shares in Al-Tayyar dropped 10 per cent on the Saudi Tadawul market on Sunday after the company issued a statement noting media reports about the detention of Mr Tayyar, who has a stake of about 30 per cent in the travel group. Sabq, a news website close to the government, reported earlier on Monday that Mr Tayyar, as well as a leading figure in the real estate sector from Jeddah, had been detained as part of continuing investigations being carried out by the anti-corruption commission led by Crown Prince Mohammed bin Salman. The arrests, first reported by the Saudi-owned Al Arabiya news channel, came just hours after King Salman ordered the establishment of the commission Dozens of princes, ministers and prominent businessmen have reportedly been arrested as part of the purge, including billionaire investor Prince Alwaleed bin Talal, one of the world’s richest men and a significant investor in Twitter, Citigroup and many other international companies, people aware of the matter said. Prince Alwaleed’s company, Kingdom Holding, on Sunday said it was “aware of various media reports regarding activities relating to its board chairman”, Prince Alwaleed. It said business operations would continue as normal and “affirmed the support of the government”. The crackdown came alongside the removal of Prince Miteb bin Abdullah as minster for the elite national guard security force, raising public speculation that the probe is also being used to clear potential dissent to Prince Mohammed’s widescale plans, aimed at diversifying the economy away from oil. The government has argued that tackling corruption will enhance the business environment for the overseas investment it hopes to attract as part of Prince Mohammed’s plans. These include a privatisation spree, including selling a 5 per cent stake in Saudi Aramco, to kick-start the diversification plans.