As oil inventories build today, a supply glut issue sending the price of West Texas Intermediate crude lower by 2.7 percent this morning, the International Monetary Fund releases a noted report on the impact lower oil prices are likely to have on Saudi Arabia, draining their reserves and stretching unemployment within the next five years. The oil price angle is one perspective to consider, as is the currency peg the Saudis have accepted between their riyal and the U.S. dollar, another factor impacting the oil producing nation’s revenues. IMF: Two factors driving Saudi Arabian economy are oil prices and petrodollar…
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- IMF: Two factors driving Saudi Arabian economy are oil prices and petrodollar peg
- Corollary between higher U.S. interest rates and global oil demand may weaken as increase in Saudi unemployment a possibility
- Saudi Arabia has been planning for a rainy day, but if an extended oil demand slump materializes strains on the economy could appear
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