Saudi strategy to share more with the people by release of funds for social aid is a smart move. The Saudi oil infrastucture is a big fat target that can be severely disrupted by just a few dozen guys on camels. Looking at the Iraq example and would be terroists/rebels could take a page from the Iraq news on pipleine attacks it is a precarious situation. I think president Bush decision to increase the strategic reserve will one day prove to be a very wise decision. It does not look like a stable middle east is going to happen. Middle east is in a metastable state. it really is a case of whats next.
Looks like oil is going down, and one might think buy on any dips. The one big risk is that another recession dip might be around the corner. Thinking oil inventoy numbers might start to show decline in the next 3 weeks and oil resumes its rise. time will tell.
This news could embolden other rebel forces. For example if a rebel force were to develop in Saudi Arabia they likey would not stand up in a square and get cut down like fodder, but could take a page from the Iraq book and go after oil infrastructure like pipelines, and if that happens look out on oil supply side. that is when the strategic reserve will pay for itself. My guess is Saudi protests are not going to be major.