Moderate oil prices hold the key to Saudi Arabia’s future prosperity | The National

Moderate oil prices hold the key to Saudi Arabia’s future prosperity | The National:



"The tenure of King Abdullah of Saudi Arabia comprised an oil boom bracketed by slumps.



King Abdullah, whose death was announced on Friday morning, took effective power in 1995, when King Fahd was incapacitated by a stroke, although his official rule did not start until 2005. Oil prices had already been low for a decade, as Saudi Arabia had tired of defending unsustainable price levels single-handedly and decided to protect its market share.



In 1998, in the face of the Asian economic crisis, the price slumped further, briefly touching US$10 per barrel. Government debt reached $130 billion in 1999, or 120 per cent of the country’s GDP."



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