Saudi Arabia, ruled by Sunnis, is the world's largest oil exporter and produces about 8.4 million barrels per day, enough to satisfy about 8 per cent of world demand. The Saudis have sent troops to Bahrain as part of a multinational force defending the monarchy there. That move was sharply criticised by Iran's Shi'ite leadership, which recalled its ambassador to Saudi Arabia. Helima Croft, an analyst with Barclays Capital, said Bahrain could become the new "central front" in an ongoing power struggle between Saudi Arabia and Iran. The violence also could hurt the Saudi's diplomatic relationship with the US That would send shockwaves through oil markets, Croft said. (AP)
