The recent escalation in oil prices (largely driven by speculators) has seemingly been muted by Saudi Arabia's promise to compensate for any loss in Libyan oil production.
However, trouble may brewing for the Saudis themselves. A "day of rage" has been planned for March 11. Wikileaks has released reports detailing the decadent behavior of the Saudi nobility.
In a land where many of the young are unemployed,this may be a recipe for revolution. For the rest of the world, it may mean the mother of all supply shocks. Contrary to the predictions of analysts like Austrian School advocate Jim 'hyperinflation is imminent' Rogers, the result could be a disastrous bout of deflation.