Saudi will not consider halting oil to West-source October 10, 2000

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LONDON, Oct 10 (Reuters) via NewsEdge Corporation -

Saudi Arabia will not consider the option of holding back oil supplies to the West to protest Israeli use of force in the Middle East, a source familiar with the kingdom's thinking said on Tuesday.

``This is not even being talked about. It is not being considered. It is out of the question,'' the source told Reuters.

The source was speaking after a warning on Monday from Saudi Crown Prince Abdullah to Israeli Prime Minister Ehud Barak against Israel taking military action in Lebanon and Syria.

The source said that it was no longer politically and economically viable for the kingdom or other Arab petroleum producers to impose an embargo on oil sales.

``Using the oil weapon would be using a weapon against ourselves,'' he said. ``We would lose status in the world order and our economies would be hurt.''

In October 1973, Saudi Arabian King Faisal sanctioned the Arab oil embargo to punish the West for its support of Israel in the Arab-Israeli war.

The Saudi crown prince did not specify what action the world's largest crude oil producer might take.

``Barak has to think before taking any step...and nobody should think that the kingdom of Saudi Arabia and the whole Arab and Islamic nation would just watch with their hands tied,'' the crown prince said.

The Saudi comments raised some concern among oil traders who are nervous about a possible disruption in oil supplies from the Middle East.

Israel's backer the United States is also Saudi Arabia's closest ally in the West and its biggest oil buyer.

Barak had threatened to take ``decisive action'' on Monday unless Lebanon and Syria to rein in the Iranian-backed Hizbollah group which on Saturday captured three Israeli soldiers in a bid to swap them with Arab prisoners in Israeli jails.

Tensions between Israel and Lebanon erupted amid a wave of violence between Palestinians and Israelis that has left at least 90 people dead and threatened the Middle East peace process.

Most of those killed have been Palestinians and Israeli Arabs.

^ REUTERS@

http://www.individual.com/story.shtml?story=d1010054.700

-- Martin Thompson (mthom1927@aol.com), October 10, 2000