How Long Can Gulf Nations Endure Low Oil Prices?

opec-oil-energy1By Jennifer Hunt-University of Sydney

In his first royal decree, Saudi Arabia’s newly crowned King Salman announced two-month bonuses for state employees, pensioners, students, and recipients of social service programs (that is, everyone in the country with a Saudi passport). It adds billions of dollars’ worth of spending to a budget already hit hard by falling oil prices. How far, and for how long, will Saudi Arabia short-sell its main source of revenue? When the Organization of the Petroleum Exporting Countries (OPEC) initiated its “price war” last year, Saudi Arabia’s resources minister Ali Al-Naimi suggested that lower crude prices would help spur demand in a still-fragile global economy.  Read Full Article

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