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Friday, 11 November 2016

Protracted oil slump exposes Saudi Arabia’s economic vulnerability

Protracted oil slump exposes Saudi Arabia’s economic vulnerability:

 "As Opec prepares to meet at the end of the month, there has been a role reversal among the cartel’s heavyweights.

Saudi Arabia and arch-rival Iran are among producer countries discussing terms of a supply deal that could — if they can pull it off — be the first output cut since the financial crisis. The kingdom, it seems, is on the back foot.

By agreeing to even engage in such discussions to reverse a pump-at-max strategy of the last two years, some oil industry analysts say Saudi Arabia has already buckled as the oil price plunge creates economic havoc. Iran, meanwhile, is reaping the rewards of the lifting of sanctions against its oil industry."



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