Export revenue generated from January to May fell by $52 billion compared to the same period last year to $60 billion.
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Trump said Saudi Arabia is going to need help fighting against the kinds of militants who have targeted neighboring Yemen.
In general, the latest forecasts show that oil prices may remain at a low level for several years, according to the expert.
In February, Standard and Poor’s downgraded Saudi Arabia from stable to negative, warning the economy is “undiversified and vulnerable to a steep and sustained decline in oil prices”. “Now we don’t need the oil so much, and if we let our people really go, we wouldn’t need the oil at all and we could let everybody else fight it out”.
In spite of the anticipated decline in overall global rig count in 2015, Saudi Arabia plans to carry out its oil field operations in accordance to its pre-existing exploration and production plans, thereby boosting oil field equipment rental market in the country.
São Paulo – The Gross Domestic Product (GDP) of Saudi Arabia should grow less this year and in 2016 due to the fall in revenues with the country’s main economic activity: oil exploration.
In Venezuela which has a world’s biggest oil reserves the opposite applies. Authorities have privately told banks no more than 40 per cent of the deficit will be financed with bonds; the rest will be covered by running down fiscal reserves. Qatar’s QE Index fell 2.5 percent to the weakest close since December.
The cost of futures for Brent crude oil fell by 1.22 percent, to $48.59 per barrel. He said he would assist the Saudis in that event, albeit reluctantly and for a price. Russia’s economy shrank 4.6 per cent in the second quarter, its worst performance since 2009.
It is a quagmire of Riyadh’s own making and, on its current trajectory, Saudi Arabia could be about to lose the war it initiated.
Gulf states, such as Bahrain and Oman, which rely heavily on Saudi cash and patronage, fear a revival of civil unrest of religious strife if the oil crisis drags on.
“We believe a tactical underweight is the preferred course of action in the short term, given what seems to be an upcoming flawless storm for emerging markets and given that the bank trades only 6.9 percent below our fair value estimate”, it said in a note. “Iran was partly driven to the negotiating table by lower oil prices”, a Mumbar think thank said. For Anita Yadav, head of fixed-income research at Emirates NBD, Dubai’s largest bank, the government could have been more transparent.
Other OPEC members such as Angola and Nigeria face deepening economic hardship fueling insurgences from groups such as Boko Haram.
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Saudi Arabia has plenty of leeway to borrow (see chart).
