"The threat to Saudi oil is a constant underlying one and we do not read yet a new imminent risk worth paying the contango premium. The Saudi sudden urge to communicate is not fitting with previous patterns and while it makes a nice headline we want to make sure before adding any risk premium that it is not a collection of small events that have been added up in a public relations exercise."
Analysts in a Petromatrix report reacting on news that Saudi Arabian authorities had arrested more than 170 people suspected terrorists, with their potential targets said to have included the country's oil facilities. This sparked fresh concerns over the possible disruption of crude supplies, but market players remained cautious as they waited for further developments.
"In the past, oil contributed to the development of the United States. Now it is time to make oil serve the development of our people. Venezuela is putting its oil reserves at the service of Latin America."
Venezuelan President Hugo Chavez and his Latin American allies wrapped up their summit in Barquisimeto late Sunday with promises of closer economic integration after Venezuela offered its leftist friends guarantees of cheap energy supplies.
Updated: April 30, 2007
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