LA Times: "For decades, Saudi Arabia worked with its dominant customer, the United States, to keep world oil markets stable and advance common political goals. But the surging price of oil, which soared more than $10 a barrel Friday to a record-high $138.54, has made it plain that those days are over. New forces, including a weak dollar and an oil-thirsty Asia, have blunted the United States' leverage and helped sour the two countries' relationship."
"By the end of 2007, it was also apparent that the Saudis no longer believed they could substantially affect prices by increasing production. Now, Saudi oil experts believe that the price run-up is due to such factors as investor speculation, the weak dollar and limited output from such key producers as Iraq, Iran and Venezuela. "
"leaders of the overwhelmingly Sunni Arab kingdom worry that the U.S.-led invasion of Iraq has weakened their security and fret about the Shiite Muslim domination of Iraq. Stephen Hadley, the national security advisor, recently acknowledged to reporters that the war has been a "stress" on the relationship."
http://www.latimes.com/news/nationworld/world/mideastemail/la-fg-ussaudi8-2008jun08,0,4289869.story
