The Ghawar oilfield, located in Saudi Arabia, is one of the world's largest. If you think oil at $102 a barrel seems expensive, you won't believe what it could go to if this oil field comes under threat.
"The latest sell-off [Of the Saudi stock market] was triggered by the arrest of a Shi’ite cleric in the Kingdom’s Eastern Province after he called for democratic reforms and a constitutional monarchy. The province is home to Saudi Arabia’s aggrieved Shi’ite minority and also holds the country’s vast Ghawar oilfield, placing it at the epicentre of global crude supply.
“Unrest in this region can have fatal consequences for the world,” said JBC Energy. “The plunge on the Saudi stock exchange can be interpreted as a sign of waning trust.”(Telegraph)
There you have it. Libya is currently at the center of the oil price news, but Saudi Arabia is sitting on a low boil. If things heat up there, oil will go to prices we've never seen--even during the embargo days.
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