Saudi arabia budget deficit has hit a staggering
$98bn (£65.7bn) this year as the world’s biggest oil exporter counted the cost of falling crude prices.
http://www.bbc.com/news/business-35188807
Sasa waache uvivu and look for other avenues to raise revenue like their other counter parts in the gulf states.
Let them start irrigating their deserts and plant crops.
Dubai walichanuka kitambo
however, those Wahabis have $654 billion in cash reserves from the boom years. They can sustain the economic warfare against the smaller U.S. and Canadian Oil fracking companies for the next five years. Which is their aim to drive them out of business and reclaim their dominant position in swaying oil market prices
It’s therefore a long term strategy.
Maybe tell us how profit and loss is computed in Saudi.
Kwanza story ya petrol hike of about 40% si itawaumiza sana…I can imagine petrol hike ya that level hapa & its Njaanuary, watu wanaumia sana…I wonder there will be domino effect.
www.aljazeera.com/news/2015/12/saudi-arabia-hikes-petrol-prices-40-pump-151228154350415.html
a quote from the guardian newspaper “…the kingdom is not counting on a major recovery of oil prices any time soon but is instead preparing for a multi-year period of cheap oil…”
Omera hope yr aware Dubai is not a country bt a state in the UAE
Hike ni juu ya gava kutoa subsidies to meet its deficit, no effect this side of the Sahara
They’re waging economic warfare mainly against Iran and Russia. Those fracking companies in the west are playing very smart, the more profit they make from oil, the more they invest in R&D, which leads to cheaper methods of extracting it. So if the Saudis are planning on putting them out of business then watapigwa na butwaa.
yep but Iranian oil is some of the cheapest to extract the warfare will affect the Russians most. The Iranian economy is quite resilient even during the sanctions era they still had a vibrant manufacturing sector that served their domestic needs. Russian oil fields are mostly located deep inside Siberia and the Island of Kamchatka. They survive mostly due to the Captive Western European Market that is why they always go out of their way to sabotage any pipeline plans from Central Asia i.e. Azerbaijan etc to offer Western Europe an alternative source.
Kwanza iran wakiondolewa sanctions, global crude prices will reduce by a significant margin
How are other major petroleum exporters faring such as Venezuela, Nigeria, Angola etc whose economies mainly depend on oil?
Nauliza tu, are you talking about “fracking companies” or “freaking companies”
fracking. A new technology used to drill oil hidden in rocks
Venezuela’s economy has gone belly up lack of basic commodities like flour and sugar in shops. One has to queue for hours for the same. Even neighborhoods that were staunch pro Chavez and Maduro voted for the opposition during the recent elections. Nigeria has never really reaped the benefits of having oil. They still import just as they always did due to shortages smh
Hmmm, naona nimeanza kuzeeka
Ubaya Kenya we will never reap the full benefits of the same due to an inefficient and cartel driven oil industry. On the down side also there is no incentive for Tullow Oil to continue exploring in Turkana due to low oil prices leading to a reduced ROI on their part
I think it’s ill advised for the kingdom to remove subsidies in petrol and foodstuff, it will create disquiet amongst the subjects, they should diversify sources of revenue and reduce the over reliance on oil.
True, Russia is becoming more and more assertive. Apart from thwarting western expansion into the Far East (Russia’s traditional sphere of influence), Putin also launched a massive and ambitious drive to modernize his country’s armed forces. The west knows their hydrocarbon dependent economy is their Achilles’ heel.
Another reason the west is growing closer to Iran is to check Saudi Arabia’s growing “arrogance” (Saudi pivot towards china). This coming at a time when the Chinese economy is slowing down, coupled with America’s plans to become a net exporter of oil by 2020, is not very good news to the Saudis.