$200 a barrel?

Image via WikipediaIs the House of Saud Next?

Most disconcerting to oil markets has been repeated reports of Shiite protests in the oil-rich Eastern province of Saudi Arabia. Despite King Abdullah's attempt to buy off the potential protesters with $36 billion of new spending in the kingdom, authorities are bracing themselves for two "days of rage" planned for March 11 and March 20 to protest double digit unemployment and the lack of political freedom in the country.


Is the Royal House of Saud next on the growing list of deposed Middle East despots?
Certainly, their political right to rule isn't any more legitimate, and perhaps no more sustainable, than Mubarak's or Gaddafi's.


If so, the path to $200 a barrel oil is a lot shorter than you think. Not only is Saudi Arabia's limited spare capacity of heavy sour crude incapable of replacing what has been lost from Libya, but the kingdom's own nine million barrels a day output may also be soon at risk.

Staycations, crowded mass transit, shortages -- summer is going to be fun.