How Much Damage Can Saudi Arabia Do To The Global Economy?

The Guardian: How much damage can Saudi Arabia do to the global economy?

Should the kingdom make good on its warnings, the repercussions could be felt around the world

Saudi Arabia enjoys a privileged position both in geopolitical and economic terms. It will have a powerful hand to play if tensions with the US and the west escalate and it follows through with Sunday’s warning of retaliation.

Its vast oil reserves – it claims to have about 260bn barrels still to extract – afford the most obvious advantage. The kingdom is the world’s largest oil exporter, pumping or shipping about 7m barrels a day, and giving Riyadh huge clout in the global economy because it wields power to push up prices.

An editorial in Arab News by Turki Aldhakhil, the general manager of the official Saudi news channel, Al Arabiya, offers a hint of what could be in the offing.

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WNU Editor: Saudi Arabia does not have the economic clout that it use to have. But they can still hurt the world's economy .... primarily by holding back oil production.

More News On The Impact That Saudi Arabia Can Have On The Global Economy

Saudi Arabia Points the Oil Weapon at Itself -- Bloomberg
Saudi Arabia breaks 45-year taboo with veiled oil weapon threat -- Houston Chronicle/Bloomberg
Riyadh threatens retaliation for 'actions' against it over missing journalist -- RT
Global stock market sell-off resumes as Saudi sanction fears push oil higher -- Insider