‘The end of an era’: oil price collapse may force Saudis to rein in arms spending

[SHAH BAAZ]

US stands behind the jews, let anyone try and they'll be flattened by the US. Let Pakistan try and you'll be in sanctioned to death.

Oh Khalid Ibn Waleed, what kind of arabs are these. You took on two super powers at the same time and these arabs are worried about a Country that is so far away. Even the Persians have more guts than these Arabs.

 

[Saddam Hussein]

Oh Khalid Ibn Waleed, what kind of arabs are these. You took on two super powers at the same time and these arabs are worried about a Country that is so far away. Even the Persians have more guts than these Arabs.

You know little

 

[The SC]

I know enough. Money cant buy you Manhood and definitely not Faith.

You have neither faith nor manhood.. just a low life trying to have some little sense of importance.. that you can't get nowhere..

 

[Enigma SIG]

So many BS replies..

First Oil prices are picking up, then these arms companies are also hit..the whole economy of the world is hit..
Saudi Arabia still has one of the biggest sovereign funds in the world and still buying big world companies' shares as we speak now.. it just bought stakes of Boeing and many others 2 days ago..

So..BS article that goes with BS comments..

Saudi foreign reserves are under pressure as they have higher fiscal break even.

"In the Putin-Salman standoff, analysts ponder which man will blink first. With a fiscal break-even petroleum price of $42.50 per barrel, Russia’s economy is more diversified than its Saudi counterpart, with a strong defense industry, the exports of which are second only to America’s. For Saudi Arabia, the fiscal break-even oil price is $85 per barrel, reports the International Monetary Fund. However, Riyadh’s foreign and gold reserves at $496.8 billion in September 2019 were higher than Moscow’s $419.6 billion.
https://oilprice.com/Energy/Energy-...-And-Russia-Really-Want-To-Kill-US-Shale.html"

 

[The SC]

Saudi foreign reserves are under pressure as they have higher fiscal break even.

"In the Putin-Salman standoff, analysts ponder which man will blink first. With a fiscal break-even petroleum price of $42.50 per barrel, Russia’s economy is more diversified than its Saudi counterpart, with a strong defense industry, the exports of which are second only to America’s. For Saudi Arabia, the fiscal break-even oil price is $85 per barrel, reports the International Monetary Fund. However, Riyadh’s foreign and gold reserves at $496.8 billion in September 2019 were higher than Moscow’s $419.6 billion.
https://oilprice.com/Energy/Energy-...-And-Russia-Really-Want-To-Kill-US-Shale.html"

MBS said in an interview in 2016 that Saudi Arabia by 2020 can live without selling oil..
Another thing is the The cost of production of a Saudi Barrel of oil is the lowest in the whole world at around $4 to $8. while Russia's is $19..
There are 2 sovereign funds in Saudi Arabia worth almost a trillion dollars..
Russia just started one worth a few billion dollars before this crisis..
And the truth is that there was no standoff between Saudi Arabia and Russia.. it was a global market price war..

 

[Enigma SIG]

MBS said in an interview in 2016 that Saudi Arabia by 2020 can live without selling oil..

Facts and figures matter. He could've said humans can live on mars without breathing apparatus wouldn't make it true.

Another thing is the The cost of production of a Saudi Barrel of oil is the lowest in the whole world at around $4 to $8. while Russia's is $19..

We're talking fiscal breakeven, not cost of production.

There are 2 sovereign funds in Saudi Arabia worth almost a trillion dollars..
Russia just started one worth a few billion dollars before this crisis..
And the truth is that there was no standoff between Saudi Arabia and Russia.. it was a global market price war..

They intended to destroy US shale but well geopolitics is always tricky; as is trade data.

 

[The SC]

Facts and figures matter. He could've said humans can live on mars without breathing apparatus wouldn't make it true.



We're talking fiscal breakeven, not cost of production.



They intended to destroy US shale but well geopolitics is always tricky; as is trade data.

Yes indeed facts speak for themselves.. KSA is still doing well despite this worldwide economic and virus crisis.. and the lowest Oil prices in recent history.... So MBS was right..

_________________________________________

Overconfident geopolitical risk predictions. National security analysts and well-respected media outlets frequently use fiscal breakeven prices as thresholds for political stability, warning that sub-breakeven oil prices sharply increase a country’s risk of social unrest or other geopolitical fallout. Oil exporters have, however, proven resilient to sub-breakeven oil prices. They often have substantial savings, and they often can adapt.

Overconfident predictions of future oil prices. Prior to the collapse of oil prices, many oil market analysts predicted that breakeven prices would act as a price floor, forcing producers to curtail production and keep prices high. These predictions were wrong. Fiscal breakeven prices also are not a floor on long-term oil prices.

https://www.cfr.org/report/fiscal-breakeven-oil-prices

 

[Enigma SIG]

Yes indeed facts speak for themselves.. KSA is still doing well despite this worldwide economic and virus crisis.. and the lowest Oil prices in recent history.... So MBS was right..

KSA doing well? What world are you living in?

https://www.bloomberg.com/news/arti...hat-may-worsen-saudi-arabia-s-economic-crisis

https://www.washingtonpost.com/worl...dcc848-938c-11ea-87a3-22d324235636_story.html

 

[Nasr]

You are too illusionary.. and have a negative mind that destroys only you.. You are too far from reality to see the truth..

Actually, I am the type that researches the subject I speak on. And I take my time in discerning misinformation from facts. Unlike yourself, who blindly supports a regime. As a Muslim, my blind allegiance is to Allah Subhanahu Wata'aalah, HIS blessed Prophet Muhammad Alaihi Salaat-u-Wassalam and the Holy Qur'an. Not some jahil regime, who proclaims to be "Khadim-ul-Haramain" and yet is indulged in fornication, gambling, Riba, worshipping their white-skinned masters and following a sect which is devoid of anything but Islam in them.

 

[The SC]

KSA doing well? What world are you living in?

https://www.bloomberg.com/news/arti...hat-may-worsen-saudi-arabia-s-economic-crisis

https://www.washingtonpost.com/worl...dcc848-938c-11ea-87a3-22d324235636_story.html

Take a look at the actual world context.. and tell me one country that is not affected..

Actually, I am the type that researches the subject I speak on. And I take my time in discerning misinformation from facts. Unlike yourself, who blindly supports a regime. As a Muslim, my blind allegiance is to Allah Subhanahu Wata'aalah, HIS blessed Prophet Muhammad Alaihi Salaat-u-Wassalam and the Holy Qur'an. Not some jahil regime, who proclaims to be "Khadim-ul-Haramain" and yet is indulged in fornication, gambling, Riba, worshipping their white-skinned masters and following a sect which is devoid of anything but Islam in them.

Let Allah Subhanahu Wata'aalah judge them.. he knows better..

 

[Enigma SIG]

Take a look at the actual world context.. and tell me one country that is not affected..

You're the one insinuating that KSA is not affected and doing well.

 

[Amaa'n]

Anyone who has ever dealt with Khaliji Arabs knows exactly how incapable of work they are.
Oil is the only thing going for them, they will have to make a hard shift to forcing their people to work or "go back to the desert" but that is impossible now since most of them don't have the skills to go back to the desert.

They really are a classic case of people winning the lottery. Most actually go bankrupt and end up worse then they were before the lottery.

absolutely wrong, situation has changed in few years and Arab leadership has realized this. They are sending their people on scholarships to US / Europe to study and return to their country and start working like everyone else.

From Kuwait, Qatar to Oman, everyone has started nationalization drives urging companies to hire local workforce, I have received pictures of Arabs working as Trailer driver to room cleaners ....so above assumption of yours is false and uncalled for

 

[ArabianEmpires&Caliphates]

KSA has very strong economy and huge reserves to live through this crisis. And everyone here who is saying KSA have been dependent too much on the west. Well its the Quality Western Hardware and Defense tech, technology and Market access that have made This Region so strong and Stable.

Its just laughable we people keep saying things like
"These pro western countries are too dependent on West" While at the same time citizen of these pro western countries living their third generation in developed and stable environment and their economies going strong as ever. While "We" supposedly "Not dependent" on the west are just still Third world countries living on promises only and having underdeveloped Industry. And Still no end to our miseries in sight. While those so called "Dependent" Countries getting stronger and stronger. KSA, UAE, Japan, S.Korea, Taiwan, Qatar, Bahrain, All Highly Developed High GDP Countries either through Resources wealth or Industry.

Anyways i personally believe its time for Saudi Arabia to gradually move from absolute Monarchy toward Constitutional Monarchy. Keeping Kingdom and Royal Family intact and introducing Parliament and Prime Minister. Even with limited Powers at first. It will solve a lots of problems for them.

The trolls in this thread are using a global financial crisis (where KSA is poised to withstand the storm better than 90% + of all the world's countries) as an excuse to showcase their inferiority complexes and hatred towards Arabs as a collective.

Based on a nonsense article containing a few lines from the well-known nonsense talker and "authority" Bruce Riedel whose entire fame is built up upon predicting the downfall of KSA every month for the past 30 + years.

It is a laughable thread with largely laughable/tragicomical replies but I guess that this is the standard of PDF nowadays.

Instead of there being 10 + recent threads about some non-existent collapse of KSA on PDF, 1 single thread should be created about this topic called "the impeding destruction of KSA" where all those "professors of Saudi Arabian and Arab affairs" can have their field day and conduct all their trolling in. In fact they can insult all they want to in that single thread with my blessing. I hope that the moderators can arrange that instead of flooding the Arab section and the Middle East and Africa section with 10's of threads about this topic based off largely speculative articles with a clear agenda from dubious individuals such as Bruce Riedel etc.

absolutely wrong, situation has changed in few years and Arab leadership has realized this. They are sending their people on scholarships to US / Europe to study and return to their country and start working like everyone else.

From Kuwait, Qatar to Oman, everyone has started nationalization drives urging companies to hire local workforce, I have received pictures of Arabs working as Trailer driver to room cleaners ....so above assumption of yours is false and uncalled for

As a moderator, may I kindly ask you to follow my advice and create a thread called "the impeding destruction of KSA" to give room to those trolls instead of there being 10 + threads about the same topic? Thank you a lot in advance.

Arguing against sheer ignorance is mostly a futile adventure online.

 

[Amaa'n]

Anyone want to be hero, bashing any nationality, be my guest
Irresponsible behavior or hatred towards anyone will not be tolerated, be towards a hindu, an Arab or a Shia, an American.

 

[Philosopher]

Saudi Arabia has a considerable ability to influence the price of oil. I am not sure why some people are acting as if Saudis are a helpless victim of these low oil prices. By tailoring supply and prices (via OPEC) the price of oil can easily go back up again. This calculated reduction of prices has two main purposes, one to create a shock-awe effect to bring the Russians and other producers back to the negotiating table (after oil talks collapsed) and secondly, to put pressure on the shell market of the US. This tactic is however a very sharp double edged sword and it can not be employed for extended period. Here is a quote from their deputy economic minister back in 2016:

So bad was Saudi Arabia’s economic and political situation back in 2016 that the country’s deputy economic minister, Mohamed Al Tuwaijri, stated unequivocally – and completely unprecedented criticism of government policy from a Saudi minister - in October 2016 that: “If we [Saudi Arabia] don’t take any reform measures, and if the global economy stays the same, then we’re doomed to bankruptcy in three to four years.” That is to say, that if Saudi kept overproducing to push oil prices down – just as it is doing right now, yet again - then it would be bankrupt within three to four years.

https://oilprice.com/Energy/Energy-General/Saudi-Arabias-Oil-War-Could-Bankrupt-The-Kingdom.html

I will not comment on the estimate of how long the Saudis can keep up with this low oil prices, but clearly it cannot go on for an extended period of time. Whether their tactics can lead to any gain, it remains to be seen.