Reuters: Egypt will have to find a new sponsor

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Saudi Arabia’s suspending refined oil supplies may have a much deeper implication than it was thought at first, indicating a beginning of a larger conflict between the two countries. Reuters supposes that the $23 billion aid deal may be no longer implemented and Egypt will have to start searching for a new sponsor.

Analysts guess that there may be a political reason of the sudden supply halt. Most probably Saudis decided to freeze supplies because of the Egyptian position over the Syria issue which contradicts the Saudi Arabia’s point of view.

“It is about Egyptian policy... that very much contradicts the Saudi policy with regard to regional strategic threats. So Saudi Arabia is very much against Iranian expansionism in Iraq and Syria and obviously the Egyptians do not see it that way,” Jamal Kashoggi, a leading Saudi commentator, said to Reuters. “Unless Egypt re-evaluates its position I foresee more differences... that could lead eventually to a very cold relationship.”

A week ago Egypt traders did not receive a regular oil shipment from Saudi Aramco. Official reasons are still not disclosed.