FAST FIVE: Saudi Arabia Is Suffering The Consequences Of Its Failed Oil Price War
Saudi Arabia Is Suffering The Consequences Of Its Failed Oil Price War Tyler Durden Fri, 10/23/2020 – 19:20 Authored by Simon Watkins via OilPrice.com, Nine months on from Saudi Arabia's second major oil price war in the last five years, more negative consequences are manifesting themselves.
All of this resulted in a current account deficit of SAR67.4 billion (US$18 billion), or 12 per cent of GDP, in Q220 compared with a surplus of SAR42.9 billion, or 5.8 per cent of GDP, a year earlier, according to Saudi Arabia's General Authority for Statistics. The official line being peddled by various Saudi agencies to explain these appalling numbers is that they are the result of the COVID-19 pandemic outbreak that destroyed demand for oil around the globe.
This, though, would have required self-control, introspection, and intelligent analysis, the lack of which in MbS was noted by, among many others, the German intelligence service, the Bundesnachrichtendienst (BND), as long ago as 2015.
Between 2014 and 2016 alone, the Saudi-instigated oil price war cost OPEC member states lost a collective US$450 billion in oil revenues from the lower price environment, according to the IEA.
According to various news reports, Saudi Aramco is currently in talks with global fund manager, BlackRock, and other international investment firms, to sell a stake in a core part of its oil infrastructure – its pipeline business – for around US$10 billion.