Saudi Unrest Adds to Concern Over Oil Prices

BY SAMANTHA MCCLENDON
Anchor: Jennifer Meckles

You're watching multisource business news analysis from Newsy

(Fox News)
“There is a real and growing concern about a possible revolt in Saudi Arabia. And that folks could be a game changer.”

A Facebook page created for Saudi Arabia calls for quote- “A Day of Rage” on March 11. The page demands the release of political prisoners, more rights for women, and more. (International Business Times)

A columnist tells Fox News about what protests in Saudi Arabia could mean for the United States.

CHARLES KRUTHAMMER: “You get a major eruption on March 11, all Hell is breaking loose because Saudi Arabia is the prize, it’s the treasure, it’s the gold at the end of the rainbow. it’s everything for the world economy. Then you have to think of Western intervention.”

Western intervention? That could be the case. Saudi Arabia is the world’s top oil producer, but as production from other oil-rich countries in the region grows more uncertain, the Saudis have stepped up to meet demand. The Sydney Morning Herald Reports...

“It is believed that the Saudi state oil company had increased its output to more than 9 million barrels per day - a rise of more than 700,000 barrels. The worsening situation in Libya has led to a loss of about 1.2 million barrels out of its 1.6 million barrels of daily output."

And a writer for USA Today explains how turmoil in Saudi Arabia could hit international pocketbooks.

“If political unrest in Libya spreads to other oil-rich countries [such as Saudi Arabia] and the ensuing chaos disrupts crude oil production, gas prices could hit $5 a gallon by peak summer driving season, industry analysts say.”

World Threats says over 400 people are involved on the Facebook page, but there’s no guarantee anything will get off the ground.

“...it is unknown how many of them are actually inside Saudi Arabia. In addition, there is deep skepticism about the ability to organize such an event given the theocratic rule of the Royal Family.”

So if gas prices were to hit 5 dollars a gallon, would you support U.S. intervention in Saudi Arabia? Leave your comments in the comments section.

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4. Added :28-Feb-11
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