It comes at a time of international outcry after journalist Jamal Khashoggi — a U.S. resident and prominent critic of Crown Prince Mohammed bin Salman — disappeared after entering the Saudi consulate in Istanbul on Oct. 2.
Turkish authorities claim Khashoggi was murdered and his body removed. Saudi Arabia vehemently denies that.
"My guess is the quid quo pro is likely going to be that the Saudi's end up pumping as aggressively as they can. And so, all things being equal, I think this is probably negative for the oil price," Michael Harris, founder of Cribstone Strategic Macro, told CNBC's "Squawk Box Europe" on Tuesday.
Harris said rising diplomatic tensions between Saudi Arabia and the West could ultimately become "hugely problematic" if it triggered oil prices to spiral out of control. That's because investors would then need to worry about Riyadh's leverage in the energy market.
"But I think the exact opposite is going to be happening. The Saudi guilt is going to play into the oil price," he said.
International benchmark Brent crude traded at around $80.20 Tuesday morning, down around 0.7 percent, while U.S. West Texas Intermediate (WTI) stood at $77.23, almost 0.8 percent lower.