Analysis: What happens if oil doesn't recover?
The collapse of the oil market — which triggered the bizarre, if brief, sight of sub-zero futures-prices this week—might unleash something more serious and enduring in certain regions of the world in the coming moths: socioeconomic breakdowns, political disruptions, and shifts in the balance of power.
Consider these statistics. In Saudi Arabia, oil revenues account for 60 percent of the country’s GDP, two-thirds of the government’s budget, and nearly three-quarters of its exports. In other states in the already-turbulent Middle East, including Iran, Iraq, Qatar, and Kuwait, the dependency is greater still. In Russia, petroleum accounts for one-third of GDP, half of the budget, and two-thirds of exports.
(By contrast, oil accounts for just 8 percent of U.S. GDP — a significant share, with bruising effect in certain states, especially Texas, but not the looming force that it is in many other countries.)
With coronavirus lockdowns causing a drastic reduction in demand for oil, many of these countries won’t be able to pay their bills, bribe their military officers, or provide basic social services to their populations.
https://www.msn.com/en-us/money/markets/analysis-what-happens-if-oil-doesnt-recover/ar-BB136FxY?li=BBnbfcN
And Saudi might not be able to bomb the shit out of civilians in Yemen.
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And if we don’t use this chance to clean up our environment, ....we deserve a fireball the size of New York hit in the middle of our planet..
