To hell the Syrians (and every swarthy Muslim refugee in Europe pretending to be Syrian), what’s a Saudi to do when he’s down to his last sheckel?
If oil stays around $50 a barrel, most countries in the region will run out of cash in five years or less, warned a dire report from the International Monetary Fund this week. That includes OPEC leader Saudi Arabia as well as Oman and Bahrain.
Low oil prices will wipe out an estimated $360 billion from the region this year alone, the IMF said.
Huge budget surpluses are quickly swinging to massive deficits as oil prices have crashed to around $45 currently from over $100 last year. Many of these countries are being forced to tap into rainy day funds to weather the storm.
“Rainy day funds” in the desert. Funny.
Saudi Arabia, the world’s largest oil producer, needs to sell oil at around $106 to balance its budget, according to IMF estimates. The kingdom barely has enough fiscal buffers to survive five years of $50 oil, the IMF said.
No offense meant to our friends, the Saudis, but what kind of inbred halfwit sets his budget on a single asset selling at a historic high? That’s dumber than camel spit.
And other than exporting radical Islam and funding Al Qaeda, what does Saudi Arabia spend money on? Okay, hookers and booze, sure, but what el—air conditioning, yes, and more hookers.
The spendthrift Saudis should have followed the example of their budget-conscious brothers:
[A] handful of countries are well positioned to face the storm. Topping that list are Kuwait, Qatar and the United Arab Emirates. That’s partially because these countries don’t need sky-high oil prices to balance their budgets.
Kuwait’s break-even oil price is estimated by the IMF at just $49, or just a tad higher than current levels. The magic number is believed to be $56 in Qatar, the host of the 2022 World Cup, while the UAE needs $73 oil.
But these three countries have built up mountains of oil money that protect them during the leaner times. The IMF said the UAE has enough fiscal buffers to withstand $50 oil for nearly 30 years. Qatar and Kuwait can sustain cheap oil for almost 25 years.
Personal aside, I can’t root against these countries hard enough. Qatar and Ahmed the Clock Boy deserve each other. And is anyone else as offended as I at the marketing campaign of Emirates airlines? They sponsor several football clubs in Europe, including Arsenal, Real Madrid, Paris St. Germain, and AC Milan; the French and US Opens in tennis; several golf tournaments; and just yesterday I saw a commercial on TV featuring Jennifer Aniston.
Pretty girl, but I can’t help hoping that she meets the same fate as those other collaborators after WWII who had offered comfort to Nazi occupiers.