In the past, stability in Saudi Arabia -- which holds an estimated one-fourth of the world's oil reserves -- has beckoned droves of foreign oil engineers and specialists. In recent months, however, a series of terrorist attacks has rocked the kingdom, prompting Western companies to withdraw some of their employees.
The growing unrest in Saudi Arabia has injected a new element of uncertainty into world oil markets, raising risk premiums on the price of crude. The spread of terrorist violence in the major Islamic state is also casting a dark shadow over the world. Democratic reform in Saudi Arabia -- a politico-religious monarchy ruled by the House of Saud -- is said to be an urgent necessity.
World oil prices topped $40 a barrel in early June, fueled by the recovery in the world economy, particularly rising oil demand in China and other emerging economies. More worrisome is the higher costs of crude itself, a trend that reflects geopolitical risks in Iraq and elsewhere. Global economic growth could come to a grinding halt if oil production in Saudi Arabia is seriously disrupted.