Potential Saudi Arabia ‘Day of Rage’ on March 11 could cause new oil high
By Elizabeth Delaney
The blaze of revolution seems to be roaring toward Saudi Arabia. Some of the demands citizens are making include resolving high unemployment (which is nearly 11 percent), raising minimum wage, addressing political corruption, abolishing, “all illegal restrictions on women,” and doing away with “unjustified taxes and fees,” Reuters reported on Tuesday.It also noted that a Facebook page was calling for a “Day of Rage” on March 11.
King Abdullah of Saudi Arabia is attempting to throw some water on the bonfire by announcing that, “a 15 per cent salary rise for public employees to offset inflation, reprieves for imprisoned debtors, and financial aid for students and the unemployed,” according to the Financial Times.
On Wednesday night civil war broke out in Libya, according to The UK Telegraph and there has been speculation that a civil war in Libya could cause $4 or $5 dollar per gallon gas in the U.S. according to USA Today.
If a Day of Rage breaks out in Saudi Arabia, that could cause oil to spike to $140 or even $200 dollars per barrel, according to CNBC.
Chief economist and Gluskin Sheff strategist David Rosenberg commented that, “Pricing in Libya supply disruptions is one thing, but what if this social unrest spreads to Saudi Arabia, which holds 20 percent of the world’s oil? Do the math: we’d be talking about $200 oil.”