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Brexit has the power to hurt Saudi Arabia's oil production

Brexit has the power to hurt Saudi Arabia's oil production

saudi1

The pound tumbling to record lows since Britain voted for a Brexit in June last year is starting to hurt British exporters servicing Saudi Arabia's oil industry.

The boss of United Corporation, a UK supplier of high-tech equipment to massive Middle Eastern oil and petrochemical companies, told the Financial Times that he is concerned about the cost of restocking his supply of materials with a weak pound.

"Eight out of 10 suppliers have sent us letters telling us that they will have to increase prices thanks to Brexit because of cost pressures. We still have stock that we bought before the fall in sterling so it is not presently a problem," said Karim Fatehi, whose company supplies critical components, such as filters and air compressors to massive Gulf producers such as Kuwait Oil Company, Qatar Petroleum, and Saudi Aramco.