Brace for $200 Oil If Unrest Hits Saudi Arabia
Commentary: Riyadh pulls the strings on global markets’ next act
MARKET WATCH: SEATTLE — Strong markets are supposed to rise along a wall of worry. This one was rising very nicely amid plenty of worries until investors caught a whiff of the idea that Saudi Arabia could fall victim to the unrest enveloping the Middle East.

So now stocks are slipping and crawling. It’s all about the optics. If you can see a problem, then you can ignore it. But if you aren’t sure what you see, paralysis ensues.

Any real threat that the Fahd monarchy and Sunni hegemony in Saudi Arabia could possibly come under attack would spark more than a worry. It would be thunder, lightning, a hurricane, a tornado, a tidal wave and earthquake all rolled up in one sand-colored bombshell.

No one really cares about Libya, after all. The two sides there can blast each other to kingdom come for all that most investors in London, Paris, Frankfurt and Wall Street care. Sure, there’s a decent amount of oil at stake at Bayda, Benghazi & Beyond, but concerns about the region begin and end at Saudi borders. >>> Jon Markman, MarketWatch | Thursday, March 10, 2011

Higher Oil Keeps Wall St. On Edge
Mar 7 - Summary of business headlines: U.S. crude rallies above $105 as violence in Libya continues; U.S. consumer credit up in January but consumers show sign of restraint; Stocks fall in U.S. and Europe. Conway G. Gittens reports

Libya: Oil Price Surges as Gaddafi Forces Gain Ground and Storm Key Town
THE DAILY TELEGRAPH: The conflict in Libya helped propel the price of oil towards $120 a barrel on Monday as forces loyal to Col Muammar Gaddafi and rebels trying to overthrow his regime formed a front line around the strategic oil town of Ras Lanuf.

Saudi Arabian political activists have also added to energy fears with calls for a day of protest this week.

Britain and France were leading diplomatic efforts to win support at the United Nations for a no-fly zone. These moves in part follow intense lobbying from the rebels. They have pressed Western oil firms to raise with their governments the spectre of losing costly infrastructure in the east of the country. >>> James Kirkup, Praveen Swami and Adrian Blomfield in Benghazi | Monday, March 07, 2011

Wall Street Rattled by $100 Oil
Mar 1 - Summary of business headlines: Oil spikes close to $100 on Middle East worries causing a 1.5 percent drop across Wall Street; Fed chief thinks price spike will be short; Factory activity, auto sales point to stronger recovery. Conway Gittens reports

Pain at the Pump
Feb 25 - As Americans head out this weekend they'll notice it is costing a lot more to fill up their gas tanks as oil prices sit near $100 a barrel. Conway Gittens reports

If the Saudis Revolt, the World’s In Trouble
THE DAILY TELEGRAPH: The fate of the global recovery rests on events in Riyadh, says Jeremy Warner.

Be careful what you wish for. After an ambiguous start, Western leaders have broadly welcomed the wave of protest and revolutions sweeping North Africa and parts of the Middle East. But beneath the words of encouragement about people taking charge of their own destiny, there is a growing and vital concern – the security of our oil and gas supplies.

The West’s complicity in supporting the autocratic regimes that characterise many of the big oil-exporting nations is in part explained by the fact that, whatever their sins, they did at least seem to provide stability in the energy markets. That stability, however, has been thrown up in the air by the wave of protest sweeping the region.

Initially, it was assumed that there was a difference between oil-poor Arab nations such as Tunisia and Egypt, where the uprisings have been as much about living standards as anything else, and the much richer Gulf states. That theory was swiftly proved wrong.

In Saudi Arabia, even King Abdullah’s panicky decision to order another multi-billion-dollar splurge of spending on education, healthcare and infrastructure may not be enough to buy off the opposition. People seem to want something more precious than money: freedom. >>> Jeremy Warner | Thursday, February 24, 2011

Related >>>

Libya: Motorists Facing £6 a Gallon at the Pump
THE DAILY TELEGRAPH: Motorists are now paying £6 a gallon in garages across the country as oil prices continue to soar amid the crisis in Libya.

The cost of unleaded has broken the barrier in 267 forecourts already and the number is set to increase sharply over the next few days.

Brian Madderson, chairman of RMI Petrol, the filling stations’ trade body, said motorists will be paying 10 pence a litre more by the end of April because of the looming increase in fuel duty and higher oil prices on the world market.

By the middle of next week £6 a gallon – or £1.32 a litre – will be the norm across Britain, Mr Madderson added.

With the Libya crisis pushing the cost of oil to its highest level on the world markets since August 2008, the cost of motoring, commuting and family holidays are also likely to rise to unprecedented levels. >>> David Millward, Transport Editor | Friday, February 25, 2011

THE DAILY EXPRESS: Driving Will Be Just for the Rich: CARS could soon become a preserve of the rich with petrol prices set to rocket to £8 a gallon, motoring organisations warned last night. >>> Mark Reynolds | Friday, February 25, 2011

Wall Street Dives as Oil Hits $100
Feb 23 - Summary of business headlines: Stocks fall for second day as U.S. crude touches $100 a barrel; U.S. home prices continue to fall; Apple expected to unveil new iPad, competitors line up. Conway Gittens reports

Libya Unrest Raises Oil Concerns
This is the first time that the changes sweeping the Arab world have hit a major oil producer and there are now fears that the spike in oil prices could hurt the fragile global economy. While Libya only produces two per cent of world oil production, 85 per cent of that is sent to Europe. Al Jazeera's Nick Spicer reports from Berlin

$100 Oil Could Shock Recovery
Feb 23 - U.S. crude oil prices touched $100 a barrel, sparking new concerns about the impact on a still frail U.S. economic recovery. Bobbi Rebell reports

”Let Them Eat Sand”
As I have been saying all along, the Saudis need us every bit as much as we need their oil. It’s high time to remind them of this fact. Remember this: Arabs respect strong people, not wimps. By behaving in a weak manner with Arabs, you get nowhere. They’ll walk all over you. Our political leaders do just that: Behave in a weak manner, and fawn. Quit it!- ©Mark

THE SHREWD ECONOMIST:
”Let Them Eat Sand” >>>

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