Khashoggi case won't impact oil market much

Even after Riyadh admitted that Saudi Arabian journalist and critic Jamal Khashoggi was killed in its embassy in Turkey, more details about the case have surfaced, sparking global condemnation and leaving many worried about its fallout on the world oil market.

Turki Aldakhil, general manager of Saudi Arabia-owned Al Arabiya Television News Network, recently warned in a commentary that sanctions imposed on Riyadh in response to Khashoggi's killing will cause the Saudi oil production to drop below 7.5 million barrels a day, triggering a sharp rise in oil prices - to $100 or $200, even $400, a barrel.

But given the latest developments, the Western sanctions and the consequent Saudi retaliation are highly unlikely to materialize. Most importantly, the United States needs Saudi Arabia's help to stabilize the energy market, especially because the US sanctions against Iran's oil exports have already taken effect.