This remarkable editorial from the Saudi Ambassador to the UK is tantamount to a call to arms. We have been buying some of the oil companies (APA, APC, OXY, CLR as they have sold off nicely on the fear of an oil glut developing much like the natural gas price collapse that occurred in North American gas.
There are two reasons why this will not happen. Unrefined petroleum products are not really landlocked like natural gas. For example there is no restriction (practical or legal) on refined petroleum products. In fact exports are at record highs. Second and that is what this article refers to is, that peace is far from breaking out in the MidEast. There is a coming showdown between Saudi Arabia and Iran and Israel and Iran. Don’t know how this will play out except its likely to prop up the price of crude.
By MOHAMMED BIN NAWAF BIN ABDULAZIZ AL SAUDPublished: December 17, 2013
Saudi Arabia has been friends with our Western partners for decades; for some, like the United Kingdom where I serve as ambassador, for almost a century. These are strategic alliances that benefit us both. Recently, these relationships have been tested — principally because of differences over Iran and Syria. We believe that many of the West’s policies on both Iran and Syria risk the stability and security of the Middle East. This is a dangerous gamble, about which we cannot remain silent, and will not stand idly by.