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October 8, 2008 4:53:59 AM CDT

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Oil Prices Threaten US-Saudi Relations

Posted Jun 8, 08 6:46 AM CDT in World 

(Newser) – The weakening dollar and rising oil prices are marring more than just the American economy: It’s also eroding the long-standing friendly relationship between the US and Saudi Arabia, the Los Angeles Times reports. A bleak economic outlook has cost the US clout with its oil-producing ally. “There’s certainly a perception that the power equation has changed,” said an oil analyst.

The oil-rich nation feels disillusioned by the US-led Iraq war and Washington’s perceived weak commitment to the Palestinians, and is ignoring American exhortations to increase oil production to keep prices lower. China is beginning to step in as a huge oil consumer and ally, and a “relationship is clearly developing rapidly,” noted another analyst, adding that Beijing may soon have greater leverage than Washington.

Source Los Angeles Times

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King Abdullah Of Saudi Arabia Meets Chinese President Hu Jintao. Relations between their two countries are solidifying as US-Saudi relations sour.   (Getty Images)
During a visit to Riyadh, President Bush failed to convince the Saudis to increase their production of oil.   (AP Photo/Susan Walsh)
A Saudi Arabian man fills his vehicle's tank at a gas station in Riyadh, Saudi Arabia.   (AP Photo/Hasan Jamali, File)
A weak dollar and an oil-thirsty Asia have blunted the United States' leverage with Saudi Arabia and helped sour the two countries' relationship.   (AP Photo/Pablo Martinez Monsivais)
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George W. Bush  • China  • United States  • oil price  • Saudi Arabia  • OPEC  • Asia  • oil production



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