By Dave Anderson:
Tomorrow's oil markets should be interesting.
The New York Times reports that the Saudi police have already opened fire on protesters in the major oil producing provinces on the Persian Gulf shore:
Saudi police opened fire at a protest march in a restive, oil-rich province of the kingdom on Thursday, wounding at least three, according to witnesses there. The crackdown came a day before a planned �day of rage� throughout the country that officials have said they will not tolerate. The clash with protesters in the heavily Shiite region underscored long-standing tensions in Saudi society:
Most Saudi oil is produced in Shi'ite dominated regions. Most of the revenue flows to the Sunni elite. The Saudi oil infrastructure is fairly brittle to any sustained assault by the locals who both know where the weak points are in the network and are unhappy with the distribution of the economic rents derived from the cheap to produce oil. If the Saudi police and National Guard cracks down hard tomorrow, oil prices will gush.
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