oil
Posted: Mon Apr 11, 2011 10:08 am
Saudi Minister: Oil Could Spike to $300 a Barrel
Former Saudi oil minister Sheikh Zaki Yamani says oil prices could soar to at least $200 or even to $300 a barrel if Saudi Arabia suffers serious political unrest.
Following protests last month calling for political reforms in the kingdom, Yamani told Reuters that underlying discontent remains unresolved.
“If something happens in Saudi Arabia, [oil] will go to $200 to $300,” he declared. “I don’t expect this for the time being, but who would have expected Tunisia?
“I think there are some surprises on the horizon.”
Yamani, who was responsible for Saudi oil policy from 1962 to 1986, spoke at a London conference of the Centre for Global Energy Studies, which he chairs.
In March, King Abdullah offered $93 billion in handouts to Saudis in an effort to avert the domestic turmoil seen in much of the Arab world.
But Jaafar Al Taie, managing director of Manaar Energy Consulting — which advises foreign oil firms operating in the region — said: “I don’t think that what the king is doing now is sufficient to prevent an uprising. Saudi Arabia is a time bomb, but one that is constantly being reset.”
A headline in The Daily Mail last week disclosed: “Oil prices hit all-time high in Britain,” reaching the equivalent of $121 a barrel.
Former Saudi oil minister Sheikh Zaki Yamani says oil prices could soar to at least $200 or even to $300 a barrel if Saudi Arabia suffers serious political unrest.
Following protests last month calling for political reforms in the kingdom, Yamani told Reuters that underlying discontent remains unresolved.
“If something happens in Saudi Arabia, [oil] will go to $200 to $300,” he declared. “I don’t expect this for the time being, but who would have expected Tunisia?
“I think there are some surprises on the horizon.”
Yamani, who was responsible for Saudi oil policy from 1962 to 1986, spoke at a London conference of the Centre for Global Energy Studies, which he chairs.
In March, King Abdullah offered $93 billion in handouts to Saudis in an effort to avert the domestic turmoil seen in much of the Arab world.
But Jaafar Al Taie, managing director of Manaar Energy Consulting — which advises foreign oil firms operating in the region — said: “I don’t think that what the king is doing now is sufficient to prevent an uprising. Saudi Arabia is a time bomb, but one that is constantly being reset.”
A headline in The Daily Mail last week disclosed: “Oil prices hit all-time high in Britain,” reaching the equivalent of $121 a barrel.