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Here's one reason why Saudi Arabia is happy to take the pain of low oil prices

So I decided to look at the numbers at work this morning... and if you think the Saudis are happy about the price of Oil... ask yourself why Saudi ARAMCO (the state owned oil company) is looking into floating an IPO for $1t to $10t (who I work for asked to be one of the underwriters).. Saudi Arabia is broke and it needs money. IMF and others (private firms) have said Saudi Arabia will run out of money in less then 5 years. ;)

Saudi Arabia needs to sell it's oil at $106 a barrel to break even (budget wise). Saudi Arabia's debt to gdp increased 20% in 2015, and will increase by 33% in 2016 at current prices.

I don't trade oil and hate that market.. but that's kind of trouble. Russia produces oil at cheaper rates then Saudi Arabia and only two or three countries produce at rates close to $50 a barrel.
Saudi needs 100 USD approx to maintain their budget expenditures.
 
I agree.
Saudi production hit a peak last summer and has been fairly flat, creeping down, ever since. American production has led to less imports and put more oil on the world market (does the US export any?) Since most US imports come from Canada, one result has been a nosedive in the value of the Canadian dollar.

US just lifted the Export ban, however we still import a substantial amount of oil. A large amount of Canada is in recession right now, you are correct, a large amount of that country's economy is from oil and mining.
 
I can agree with your assumptions regarding the nation-states in question. However, let's not forget the central-theme that has been playing out in the Middle-east since the seventh century. (Yes, it dates from that time!)

Which is the enmity between the Sunnites and the Shiites that has foisted war upon war until the Ottomans (Sunnis) dominated all the territories in question and put an end to the strife. The Sunnis are inferior in numbers, however, to the Shiites.

Excerpted from Wikipedia, here: {Sunnis are a majority in most Muslim communities in Southeast Asia, China, South Asia, Africa, most of the Arab World, and among Muslims in the United States (of which 85–90% are Sunnis). This can also be confusing because of the fact that the majority of Arab Muslims in the United States are Shia, while the majority of Arab Americans are Christians, the conflation of Arab and Muslim being quite common.

Shias make up the majority of the Muslim population in Iran (around 95%), Azerbaijan (around 90%), Iraq (around 75%) and Bahrain (around 70%). Minority communities are also found in Yemen where over 45% of the population are Shia (mostly of the Zaidi sect), according to the UNHCR. Others put the numbers of Shias at 30%. About 15-20% of Turkey's population belong to the Alevi sect. The Shia constitute around 30–40% of Kuwait, 45–55% of the Muslim population in Lebanon, 25% of Saudi Arabia, 12% of Syria, and 20-25% of Pakistan. Around 15–20% of Afghanistan, less than 6% of the Muslims in Nigeria, and around 5% of population of Tajikistan are Shia.}

The demise of the Ottoman Empire (after WW1, and thank you Lawrence of Arabia) simply renewed the mutual aggression that has played out politically on both sides in all the countries of the Middle-east.

Until these Muslim countries can find a mutual-ground for "be and let be", the strife between them likely will continue ...
 
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US just lifted the Export ban, however we still import a substantial amount of oil. A large amount of Canada is in recession right now, you are correct, a large amount of that country's economy is from oil and mining.

Yeah, I don't think it's officially a recession yet (two consecutive quarters of zero economic growth nationally) but there's areas definitely hurting from low commodity prices, especially Alberta and parts of Saskatchewan and northern BC.. Even gold has come down from it's dizzy heights.
Oil, what can you say. Oil and politics are like two inextricably entwined octopodes (go ahead, three times fast!) and Canada, though we have much oil, has little political influence. We rank between Sudan and Morocco in population.
Odd, isn't it, that the export ban was lifted just when the price is at a bargain level? Why go into a high-supply international market now?
 
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