Saudi Arabia’s financial woes are mounting, and unless Riyadh gets its financial house in order, Saudi Arabia's 33 million people could see its economy collapsing, warns Forbes. The kingdom is facing a budget deficit of $110 billion this year, according to the International Monetary Fund, which has warned that it will run out of money by mid-2015. As we have noted, Saudi Arabia is struggling with over two years of falling global oil prices amid high global oil production and record high oil inventory levels. The bond offering comes as the kingdom grapples with a more than two-year down tick in global oil prices amid historically high global oil production and corresponding record high oil inventory levels. Riyadh has also posted record high budget deficits - $98bn for 2015, equal to 15% of its GDP. Additionally, US shale oil producers are taking more control of global oil markets from Saudi Arabia and OPEC, and rendering less effective any production cut OPEC would seek to put in place.
Saudi Arabia’s financial woes are mounting, and unless Riyadh gets its financial house in order, Saudi Arabia's 33 million people could see its economy collapsing, warns Forbes. The kingdom is facing a budget deficit of $110 billion this year, according to the International Monetary Fund, which has warned that it will run out of money by mid-2015. As we have noted, Saudi Arabia is struggling with over two years of falling global oil prices amid high global oil production and record high oil inventory levels. Riyadh has also posted record high budget deficits - $98bn for 2015, equal to 15% of its GDP. Additionally, US shale oil producers are taking more control of global oil markets from Saudi Arabia and OPEC, and rendering less effective any production cut OPEC would seek to put in place.