Monday 4 April 2011

FT.com - ‘Irreplaceable’ Riyadh’s oil market risks

The oil market is learning to live with a fat-tail risk it never imagined: Saudi Arabia.

The kingdom is central to the energy market: it produces about 12 per cent of the world’s oil – only Russia comes close in size – and accounts for more than three-quarters of spare production capacity.

In short, Riyadh is irreplaceable.

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