Saudi Arabia Set to Secure $10 Billion Loan to Address Budget Shortfall

N1AK

CLAPTON wrote: »

this is clearly another example of the impact on the world's stability due to the brexit referendum.

I'm surprised you're not pointing out how them just leaving the EU would solve all their problems; after all why let the fact they're not part of it in the first place get in the way of your mono-issue agenda.

CLAPTON

N1AK wrote: »

I'm surprised you're not pointing out how them just leaving the EU would solve all their problems; after all why let the fact they're not part of it in the first place get in the way of your mono-issue agenda.

you frequently demonstrate your inability to support rational thought when the matter affects the EU, there is no need to demonstrate your humour deficit too.

Thrugelmir

michaels wrote: »

But the point being even if US shale largely closes down, any resulting increase in price will only result in that production and other non-opec marginal production opening up again and thus putting a ceiling on prices.

Game of poker. Who'll throw in the cards first. North Sea looks increasingly unprofitable. Shale production is cheaper.

Jonbvn

mwpt wrote: »

I actually spoke about this once to a friend of mine who works in the O&G industry. I asked if it was in the West's interest to keep O&G prices high to keep these regions stable. I genuinely don't know the answer to this but my thought process was similar to yours above. What do these countries produce that will sustain their way of life in the absence of high O&G prices? How will populations react to this changing?

This is the key. It is not inconceivable that unrest in the ME and specifically Saudi could lead to a huge loss of oil production very quickly. (Mm... where have we seen this before??) The increase in POO could make your eyes water.

HornetSaver

Proof, as if any were needed, that oil is the miracle cure for everything.

princeofpounds

Budget deficit of 19% makes even Greece look prudent.

Greece is prudent now. 0.7% primary surplus last year. If you roll in debt payments, deficit probably only about 2.5%.


Greece's fiscal position is now fine, as long as the creditors support it.


Anyway, Saudi has loads of assets, but not all are easily monetisable, hence the loan. It is also burning through those assets very quickly mind you. Effect on population actually relatively small so far - a couple of taxes introduced, a few subsidies pulled back - but can't avoid it for ever.