What Happens if Oil Doesn’t Recover?
If demand doesn’t pick up this summer, we could see major shifts in global power.
The collapse of the oil market—which triggered the bizarre, if brief, sight of subzero futures prices this week—might unleash something more serious and enduring in certain regions of the world in the coming months: socioeconomic breakdowns, political disruptions, and shifts in the balance of power.
Consider these statistics. In Saudi Arabia, oil revenues account for 60 percent of the country’s GDP, two-thirds of the government’s budget, and nearly three-quarters of its exports. In other states in the already-turbulent Middle East, including Iran, Iraq, Qatar, and Kuwait, the dependency is greater still. In Russia, petroleum accounts for one-third of GDP, half of the budget, and two-thirds of exports.
continues at source:
How Long Can Saudi Arabia and Russia Survive in a World of $20 Oil? t.co/np8koi1teD
— Slate (@Slate) April 23, 2020