Saudi stocks slump as minister warns of ‘painful’ measures ahead
1–10 of 88 posts
Re: Saudi stocks slump as minister warns of ‘painful’ measures ahead
#2Can the Saudi government survive a reduction in services? Their economy is largely built around the distribution of oil sale proceeds, I’m worried that cutting benefits might destabilize that regime.
Re: Saudi stocks slump as minister warns of ‘painful’ measures ahead
#3Can the Saudi government survive a reduction in services? Their economy is largely built around the distribution of oil sale proceeds, I’m worried that cutting benefits might destabilize that regime.
Maybe they can use some of they money they invested in wework and such
Re: Saudi stocks slump as minister warns of ‘painful’ measures ahead
#4Can the Saudi government survive a reduction in services? Their economy is largely built around the distribution of oil sale proceeds, I’m worried that cutting benefits might destabilize that regime.
That's what the US troops are there for. The US needs the Saudi dictators to maintain their influence in the region.
Re: Saudi stocks slump as minister warns of ‘painful’ measures ahead
#5Can the Saudi government survive a reduction in services? Their economy is largely built around the distribution of oil sale proceeds, I’m worried that cutting benefits might destabilize that regime.
Ya, and they were diversifying into tourism which is also bust.
I’m sure they’ll survive though. Their wealth is in the trillions.
Re: Saudi stocks slump as minister warns of ‘painful’ measures ahead
#6I'm reminded of a classic Sam Kinison piece..... https://youtu.be/wAgUICswZuY
Re: Saudi stocks slump as minister warns of ‘painful’ measures ahead
#7Looks like Saudi regime is in big trouble. They won't be able to balance their budget with oil prices so low and they won't be able to make payments to thousands of their princes.
I did some searching and found few interesting data points:
>For dozens of oil producers, the plunge in oil prices is devastating. No major oil producer can balance its budget at prices below $40; according to the International Monetary Fund, with the exception of Qatar, every country in the Middle East requires at least $60, with Algeria at $157 and Iran at a whopping $390. The average Brent price of oil over the past month has been a hair above $20. [1]
and this from 2019:
>Top oil exporter Saudi Arabia would need oil priced at $80-$85 a barrel to balance its budget this year, an International Monetary Fund official said. [2]
Given that WTI is at $19 and Arab Light at $21, there's going to be lots of internal changes in ME in the coming years. Probably a few wars too.
[1] https://www.bloomberg.com/opinion/articles/2020-04-29/covid-...
[2] https://www.reuters.com/article/us-saudi-economy-imf/saudi-a...
Re: Saudi stocks slump as minister warns of ‘painful’ measures ahead
#8Saudi has been investing heavily in the US stock market. At somepoint they were holding TSLA as well, despite relying on oil for their living.
Re: Saudi stocks slump as minister warns of ‘painful’ measures ahead
#9Can the Saudi government survive a reduction in services? Their economy is largely built around the distribution of oil sale proceeds, I’m worried that cutting benefits might destabilize that regime.
That's what the US troops are there for. The US needs the Saudi dictators to maintain their influence in the region.
Needed, past tense. US foreign policy used to be shaped around our need for Saudi oil, and IMO hasn’t properly adjusted to the fact that America is energy independent again. The realpolitik question now isn’t “how can I secure Saudi oil” But rather “what’s the least I can do to reduce any risk of terrorism”.
Re: Saudi stocks slump as minister warns of ‘painful’ measures ahead
#10Can the Saudi government survive a reduction in services? Their economy is largely built around the distribution of oil sale proceeds, I’m worried that cutting benefits might destabilize that regime.
Ya, and they were diversifying into tourism which is also bust. I’m sure they’ll survive though. Their wealth is in the trillions.
The Saudi budget is a quarter of a trillion dollars. “Trillions” doesn’t last very long at those levels.