the RATS are trying
Posted on 09/25/2016 2:32:40 PM PDT by Lorianne
Lower revenue hurts economy, prompting government to withdraw some benefits; as cost of living rises, consumers cut back on spending ___ With a slowing economy and shrinking foreign reserves, the kingdom is coming under pressure to take steps that support the price of oil, as it did this month with an accord it struck with Russia.
... a sharp drop in the price of oil, Saudi Arabia’s main revenue source, has forced the government to withdraw some benefits this year—raising the cost of living in the kingdom and hurting its middle class, a part of society long insulated from such problems. Saudi Arabia heads into next week’s meeting of major oil producers in a tight spot. With a slowing economy and shrinking foreign reserves, the kingdom is coming under pressure to take steps that support the price of oil, as it did this month with an accord it struck with Russia. The sharp price drop is mainly because of a glut in the market, in part caused by Saudi Arabia itself. The world’s top oil producer continues to pump crude at record levels to defend its market share.
One option to lift prices that could work, some analysts say, is to freeze output at a certain level and exempt Iran from such a deal, given that its push to increase production to pre-sanction levels appears to have stalled in recent months. Saudi Arabia has previously refused to sign any deal that exempts arch-rival Iran. As its people start feeling the pain, that could change. The kingdom is grappling with major job losses among its construction workers—many from poorer countries—as some previously state-backed construction companies suffer from drying up government funding. Those spending cuts are now hitting the Saudi working middle class.
(Excerpt) Read more at wsj.com ...
Two decades too late.
Prohibit a 70 year old practice of propping open hydraulic created fissures (fracking), associated now with horizontal directional drilling of oil bearing shale deposits, and one could cut off domestic oil production.
The M.E. region is running out of fresh water at a faster rate than Saudi oil wells are increasing the brine cut. Losing the ability to purchase food and keep the area population pacified will provoke a revolt.
the RATS are trying
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