Did you know? The Patriot Post is funded 100% by its readers. Help us stay front and center in the fight for Liberty and support the 2021 Year-End Campaign.

Jordan Candler / February 26, 2016

Low Oil Prices Devastate Saudi Arabia’s Economy

This year the Saudis expect another $87 billion shortfall.

Millions of Americans who live paycheck to paycheck received some much-needed relief — a real mini stimulus, if you will — when oil prices unexpectedly began to tailspin two years ago. The even better news for now is that the cost of oil has stayed perennially and stubbornly low (though beware the long-term consequences). But for OPEC members, the news was never good for one critical reason: Oil sales are the economic support system of most Arab countries, so the effect of sluggish exports is both immediate and crippling. That puts countries like Saudi Arabia — a U.S. ally — in an interesting dilemma.

The cost of crude oil has slipped by 70% since 2014, resulting in the Saudis operating deep in the red. “Oil revenue accounts for an estimated 90 percent of the Saudi government’s income,” according to The Washington Post, “leading to last year’s large budget deficit of $98 billion, or about 15 percent of gross domestic product.” And this year the Saudis expect another $87 billion shortfall. This isn’t exactly a zero-sum game, but there is a yin to the yang of low oil prices. It will bear watching how the market affects our allies and adversaries around the world.

Start a conversation using these share links:

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2021 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.