{"id":55620,"date":"2020-11-14T07:55:17","date_gmt":"2020-11-14T12:55:17","guid":{"rendered":"https:\/\/olduvai.ca\/?p=55620"},"modified":"2020-11-14T07:55:17","modified_gmt":"2020-11-14T12:55:17","slug":"oil-price-crash-costs-saudi-arabia-27-5-billion-in-revenue-in-2020","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=55620","title":{"rendered":"Oil Price Crash Costs Saudi Arabia $27.5 Billion In Revenue In 2020"},"content":{"rendered":"

Oil Price Crash Costs Saudi Arabia $27.5 Billion In Revenue In 2020<\/a><\/h3>\n
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The oil price collapse is depriving Saudi Arabia of US$27.5 billion in oil revenues this year, Saudi Crown Prince Mohammed bin Salman said on Friday, admitting that the current oil income is not enough to cover the Kingdom\u2019s salaries bill.<\/p>\n

Saudi Arabia had projected last year that this year\u2019s revenues for the state would be US$222 billion (833 billion Saudi riyals), of which US$137 billion (513 billion riyals) would come from oil, the crown prince said in a\u00a0speech<\/a>\u00a0carried by the official Saudi Press Agency.<\/p>\n

However, after the collapse in oil prices, Saudi Arabia\u2019s oil revenues actually dropped to US$109 billion (410 billion riyals), Mohammed bin Salman said.<\/p>\n

Thus, the price crash\u2014which Saudi Arabia itself helped to create by\u00a0flooding the market with oil<\/a>\u00a0in April\u2014cost the world\u2019s top oil exporter just over US$27.5 billion in oil revenues this year.<\/p>\n

\u201cThese revenues alone are insufficient to cover even the salaries bill estimated at 504 billion riyals in this year\u2019s budget, not to mention the difficulty of financing other items which include capital spending by 173 billion riyals and social security benefits by 69 billion riyals as well as operation and maintenance bill estimated at 140 billion riyals and others, which means an economic recession and millions of jobs lost,\u201d Mohammed bin Salman said in his speech.<\/p>\n

The collapse in oil prices has forced the Kingdom to\u00a0take some very unpopular measures<\/a>\u00a0such as tripling the value-added tax (VAT), reducing payouts to poorer households, and discontinuing cost-of-living allowances for state workers.<\/p>\n

Earlier this week, Fitch Ratings\u00a0revised down<\/a>\u00a0its the outlook on Saudi Arabia\u2019s long-term foreign-currency Issuer Default Rating (IDR) to \u2018negative\u2019 from \u2018stable\u2019, citing \u201cthe continued weakening of its fiscal and external balance sheets, which has been accelerated by the coronavirus pandemic and lower oil prices, despite the government\u2019s strong commitment to fiscal consolidation.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Oil Price Crash Costs Saudi Arabia $27.5 Billion In Revenue In 2020 The oil price collapse is depriving Saudi Arabia of US$27.5 billion in oil revenues this year, Saudi Crown Prince Mohammed bin Salman said on Friday, admitting that the current oil income is not enough to cover the Kingdom\u2019s salaries bill. Saudi Arabia had […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[592,1775,5332,701,14603],"class_list":["post-55620","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-oil-price","tag-oil-price-collapse","tag-oilprice-com","tag-saudi-arabia","tag-tsvetana-paraskova"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=55620"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55620\/revisions"}],"predecessor-version":[{"id":55621,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55620\/revisions\/55621"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}