zagros.ws Current Events: World and Middle East News

Saudi Oil Prices Plummet

When the oil prices were high Saudi Arabia was making a billion dollars a day. Now in the current economic crisis it’s earning just $700m equating to £432m). to us it may only seem like a small difference but for the oil exporting nations this is hitting them hard. In the global recession prices have halved bringing good news to the consumers and bad news for the producers. If the prices continue to slump then public spending concerns will grow as the government get between 75% and 95% from the oil income. This is proving to be a big issue as the movements are now having to dip into there reserves to fund big projects such as motorways, airports and public transport systems.