Saudi Arabia extends oil grant to JordanWhat this story doesn't mention is that the Saudis had accrued a vast oil reserve specifically to deal with Jordan and with others long before the war broke out, an interesting economic footnote to Gulf War II.
Jordan holding discussions with Kuwait, UAE to resume their grant of 50,000 barrels of crude oil per day.
AMMAN - Saudi Arabia has agreed to extend for one year an oil grant to Jordan and similar discussions are underway with Kuwait and the United Arab Emirates, government spokeswoman was quoted as saying Thursday.
"Saudi Arabia agreed to renew for one year the oil grant to Jordan," Khodr Asma Khodr told the newspaper Al Rai.
"Discussions are underway with the brotherly states of Kuwait and the United Arab Emirates and it is hoped that they will lead to the resumption of oil grants from the two countries," she added.
Jordan had been totally dependent on Iraq for its oil needs before the March 2003 US-led war on its eastern neighbour, importing 5.5 million tonnes annually by road, half of it free and the other half at a preferential price.
As supplies were cut off with the oubreak of the war, Jordan turned to the oil-producing giants in Saudi Arabia, Kuwait and the United Arab Emirates and struck up a deal to receive 100,000 barrels of crude oil per day.
The Saudi grant consisted in 50,000 barrels of crude oil per day with the rest shared equally by Kuwait and the United Arab Emirates.
I suppose that Jordan may want to secure its own supply of oil from Iraq, in return for sending their troops to Iraq.