Saudi Arabia Runs 0ut of Money

Riyadh has shot itself in the foot by adopting a predatory pricing policy in the oil market aimed at wiping its competitors out; now the House of Saud is reaping a whirlwind it sowed.

Iranian oil workers work at the Tehran's oil refinery south of the capital Tehran, Iran, Monday, Dec. 22, 2014

Back in 2014 Saudi Arabia decided to drop oil prices in order to expel Russia from the European and Asian oil markets and at the same time to deal a heavy blow to the US shale oil industry.

However, the Saudi royalty has apparently never heard of the old Chinese proverb that says: “Before you embark on a journey of revenge, dig two graves.”Thus, unsurprisingly, Riyadh’s irresponsible oil gambling has boomeranged back and struck Saudi Arabia and its people, Russian political scientist Petr Lvov notes.

Although Russia has been hit by the slump in oil prices it has remained “standing tall” and proven “to be more resilient that Saudi Arabia which produces nothing else besides hydrocarbons, and is fully dependent on cheap labor from Asia,” the scientist stresses.Lvov draws attention to the fact that in 2016 it turns out that Riyadh has nearly run out of money being unable to pay working migrants enough for their jobs. Other oil-dependent Gulf kingdoms are now in the same boat as Saudi Arabia.

“To make matters worse, migrant workers are becoming increasingly frustrated with the Persian Gulf states,” he notes, warning that the proportion of local populations versus migrants in Gulf monarchies can result in social turmoil.

-Read more at Sputnik

 

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