“Saudi Arabia has withdrawn tens of billions of dollars from global asset managers as the oil-rich kingdom seeks to cut its widening deficit and reduce exposure to volatile equities markets amid the sustained slump in oil prices.”
I think Saudi Arabia do not have any other better choice rather than withdraws overseas funds, since they are short of money. The low price of oil really hurts those countries who rely on oil output such as Saudi Arabia because they cannot control the oil prices like the old days.
1 comment:
I was under the impression that OPEC wanted lower oil prices. Fortunate for them, obtaining oil is much cheaper so they are able to operate at these low margins, unlike many U.S. drilling companies. If prices continue to stay low the oil industry in the U.S. is going to have to consolidate and many firms will most likely shut down. This would be advantageous to OPEC producers, because they would control the majority of the oil industry.
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