The standoff between
Iran
and
the West over the country's nuclear program risks dragging in
Saudi
Arabia
, says Petromatrix analyst
Olivier Jakob.
"One of the risks with
Saudi
Arabia
trying to replace
Iran
supplies while the West imposes an embargo is...a greater conflict between
Iran
and
Saudi
Arabia
," he says.
"We
should not forget that the initial start of the Iraqi attack on
Kuwait
had
something to do with
Kuwait
over-producing and taking the market share of
Iraq
."
Some Japanese oil buyers have already approached
Saudi
Arabia
over a replacement for
Iranian crude.