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  Thursday  June 3  2004    07: 50 AM

saudi arabia

Once seen as an alarmist fear, an attack on key Saudi oil terminal could destabilise west


When Fadel Gheit first warned of his "nightmare scenario" that Saudi Arabia's main oil export terminal at Ras Tanura could be wiped out by terrorists, he was dismissed as an alarmist.

It was the week after the September 11 attacks in New York, where he is based. But the oil analyst began to think there was another target that would have an even more devastating impact if hit.

As fears of upheaval in Saudi helped set world crude oil prices to 21-year highs of $42.45 per barrel ahead of an Opec ministerial meeting today, there were fewer willing to scoff at Mr Gheit.

"I cannot think of any more logical target for terrorists. It [Ras Tanura] is the nerve centre for the Saudi oil trade but also for global exports. If you can blow up the Pentagon in broad daylight, then it cannot be impossible to fly a plane into Ras Tanura - and then you are talking $100 [per barrel] oil," he says.

[more]


Another oil shock?
The world depends for low oil prices on an unstable country that seems to be falling apart. No wonder they are rising



Attack Increases Doubts About Saudi Ability to Pump More Oil


Latest al-Qa'ida attack puts Saudi oil industry in question
Despite assurances, analysts are likely to be wary for some time to come, reports Nicholas Pyke



Expats living in fear inside mini-fortresses   thanks to The Agonist