Saturday, February 26, 2011

Further Signals of Unease in Saudi Arabia

I don't read Arabic but Blake Hounshell thumbs that this says Saudi liberals want a constitutional monarchy.

Things have been quiet in Saudi Arabia, relative to what has been going in in other parts of  the greater Middle East, but there is clearly unease under the surface. Saudi Arabia’s King Abdullah recent announcement that the government would increase benefits by more than $36 billion is a clue that the King is aware that tensions need to be defused.

If the unease turns to outrage and riots, with a threat to Saudi oil production, then things get real serious, globally. Libya is responsible  for less than 5% of OPEC production, but Saudi Arabia produces over 30%. Iran produces roughly 12%.

If Saudi Arabia or Iran blows (and Iran looks very close) then world stock markets get really smacked.

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