Report
Hendra Lau

Will Jamal Khashoggi’s Incident drive up Oil Price?

In the past few weeks, the world has been shocked by the killing of Jamal Khashoggi inside Saudi Arabia’s consulate in Istanbul. Mr. Khashoggi is a Washington Post journalist and he was at the consulate for marriage-related document. Initially, the Saudi’s government said Mr. Khashoggi left the consulate alive. However, they changed their narrative on the weekend and admitted that Mr. Khashoggi was dead. The official explanation is that he died in an altercation.

The explanation contradicts the leak by Turkish officials which paints a grisly detail of the murder. The media reported that 15 Saudi hit squad flew to Turkey and ambushed Jamal Khashoggi inside the Saudi Arabia’s consulate. They then dismembered his body with bone saw and flew back to their home country at the same day. Turkish officials identify these people as high-ranking officials with close ties to MBS (Mohammad Bin Salman), Saudi Arabia’s crown prince.

This week we will be waiting for the world’s response to this explanation by Saudi Arabia. Last week, the Riyadh government issues a warning emphasizing Saudi’s important role in the global economy and that “any action would be met with greater action.” Saudi State media also responded “If the price of oil reaching $80 angered President Trump, no one should rule out the price jumping to $100, or $200, or even double that figure.”

President Trump initial response was to say that the explanation is a great first step. He also stressed that Saudi Arabia is an ally and he didn’t want to unravel the arms deals. He has also floated the idea of a “rogue army” and the crown prince didn’t know about the killing. US Senators however is much more skeptical, as seen from their reaction in twitter below:

 

 

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Analysts
Hendra Lau

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