Big Banc Split Corp T.BNK

Saudi Arabia

[grantoue]

Saudi Arabia had a 98 billion dollar deficit in 2015. if you divide this by 10 million barraels a day of oil production, they lost $26 dollars a barrel . they predict they will lose 86 billion in 2016. crazy miss management of their natural resources.

[m8magic]

but they had a 750 billion dollar bank account....less the losses you indicate...they cant keep going or they will turn a corner into unknown terrain that will put them into the third world ...A very dangerous situation for them..They are a one trick pony and they need the money to establish an diverse economy and they are not in a position at these oil price levels

[bmeister2]

I hope those suckers get a taste of their own medicine and feel the wrath of their citizens when taxes go up along with costs as people realize what they have done by maintaining super low prices. I blame the Americans just as much for supporting their regime who are known to be bankrolling a lot of terrorism for years, such as Bin laden,etc. North America should have our own pricing scheme and

[nexthink]

Dont forget the Saudis still have $700 billions cash. So they can still have 6 more years of deficit like the one in 2016  while maintenaining their current standard of living.  The Saudis have no pressure as they can wait few more years at the current oil price.

[GUY2012]

If OPEC wants to keep manipulating the price of oil (by not capping output), then why the heck doesn't the rest of the worlds economies who need higher oil prices to thrive simply BOYCOT buying oil from OPEC. Who the heck needs them anyway. Let them suffer the consequences of their own creation.

[braincloud]

I don't think that would be possible. OPEC wants the shale producers to fail. There will be more and more Chapter 11's coming and financing will dry up and then OPEC.'s strategy will have worked. US shale production, save the best of the bunch, will drop dramatically.

[corvette67]

Hate to disagree but OPEC's strategy will only be good for a very short time. Assets of shale producers put out of business will be picked up at steep discounts so the new owners will have an even lower breakeven point to put the properties back into production making the situation for OPEC even worse. A case of dumb and dumber. GLTA

[braincloud]

Perhaps, but moving to stronger hands does not necessarily mean they will exploit the assets right away. Margins are still tough at these low oil prices even for the mega players. The levered producers are producing because they have to. The less levered ones will wait for better days. Remember that the US still imports more than half their requirements. Conventional deposits still produce the

[himmler]

Too much talk about 'OPECS' strategy ..and the same goes about the Saudis and their market share.This is all talk that originated in wall street because of a loss of writing material.Is this simplified commentary by me?..possibly.However I prefer to look at facts and they are this: oil began its decline in the summer of 2014..and there was no chatter at that time at wall street about over

[LordIskander]

Their reserves are about $670b now. Seems to me this first budget of the new king is a Thatcherite austerity budget aimed at weaning the population off subsidies. Just like Thatcher had Falklands these guys have Yemen to pay for as well. I have a feeling that Thatcher's 'scorched earth' wont work well on parched land.

[Trader124]

at least they have a reserve. What about Canada USa and europe. They all have deficit and no reserve. Thats even worst