But We Have Photos That Could Tell A Different Story
Earlier, Zero Hedge cited reports that a Saudi oil pipeline had exploded—both from Iranian Press TV as well as a blog titled The Arab Digest.
Immediately following Zero Hedge's report, the price of oil shot upwards, hitting $110 per barrel momentarily. That's the highest price of crude since May 4, 2011.
We think the reason that this headline had such an impact on markets is because the report that's generally being cited—that from The Arab Digest—suggests that the explosion is related to the Arab Spring protests:Around 4PM, Saudi officials denied reports of the explosion, according to Dow Jones. That appeared to still the rise in prices.
Concerns remain about Saudi officials' motives for the denials, and given the country's tight control of the media there may be reason to dispute their statements.
Here are photos from The Arab Digest, reportedly showing the pipeline on fire. The blog says these photos come from their correspondent based in Qatif.
The Eastern region is where most of the oil fields are based. The events, if they continue, might force Saudi Arabia to lower its production expectations this year, thus affecting world supplies, and possible the world economy.
Below is a video of Awamiya, Eastern Saudi Arabia, you could see the oil fields from minute three onward. The oil fields are a vital source of Oil production in Saudi Arabia and the world.
The Arab Digest
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