Saudi Arabia’s Oil-Bust Cash-Flow Debacle Begins to Bite

Posted by Wolf Street

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ddHangover of oil dependence has only just begun

Saudi Arabia’s oil-dependent economy is in a bit of a pickle. For its budget to break even, the country needs an oil price of $104 a barrel, claims the Institute of International Finance. The current price is around $45. According to the IMF, Saudi Arabia may run out of financial assets needed to support spending within five years. So severe is the problem that the House of Saud now has little choice but to do something it hasn’t had to do for decades: ration its spending.

….read more HERE

related: Martin Armstrong: Saudi Arabia on the Ropes?