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Falling oil prices to weigh on Saudi current account - IIF

Falling oil prices to weigh on Saudi current account - IIF
The Institute of International Finance (IIF) has stated in a report that falling oil prices will impact Saudi Arabia’s current account by 11% in 2015.
It added that several global oil producers will be severely pressured by the repercussions of oil price decline.
The financial breakeven price in most oil-producing countries will exceed $80 per barrel, excluding Qatar, Kuwait and the UAE, the IIF said.
Brent oil prices reached more than $61 per barrel yesterday.
If average oil prices continue to decline below $80 per barrel next year, low oil revenues will add more pressures on these countries, according to the report.
Saudi Arabia, Qatar, Kuwait, the UAE and Algeria have enough sources to continue with their government spending plans.
The overall economic growth in these countries is likely to ease from 4.1% in 2014 to 3.4% in 2015.
The surplus in the current accounts of Kuwait, the UAE, Saudi Arabia and Qatar is expected to continue in the next two years, the IIF said. It expects these countries to keep pegging their currencies to the US dollar.
Photo Credit: Arabianeye-Reuters