New forces fraying U.S.-Saudi oil ties

Surging prices, along with a weak dollar and an oil-thirsty Asia, have blunted America's leverage with the key oil producer and helped sour the two nations' relationship.

By Paul Richter
Los Angeles Times Staff Writer
June 8, 2008

WASHINGTON — 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.