Who is on the Oil Cliff?<\/p>\n
The Saudi economy is short of cash, prompting both the public and the private sector to cut their expenditures; meanwhile, bank clients are withdrawing their deposits and taking new loans, meaning the economic outlook for the oil-reliant nation is rather gloomy. \u00a0Although the Saudi economy hasn’t been badly shaken yet by\u00a0the decline in\u00a0oil prices, it has by\u00a0now lost its development momentum, meaning the nation’s capability to\u00a0expand oil production is limited. As most Saudi energy projects are bound to\u00a0falter amid\u00a0the mounting disinvestment, crude prices will settle at\u00a0a more stable foundation and the Kingdom will lose some of its historic pricing power.<\/p>\n
For Russia, $30 is the number to watch. \u00a0Crude prices at that level will push the economy to depths that would threaten the nation\u2019s financial system, according to 15 of 27 respondents in a Bloomberg survey. Lower prices for the fuel are next year\u2019s biggest risk for Russia, which is unprepared to ride out another shock on the oil market, most economists said. Other dangers for 2016 include geopolitics, strains in the banking industry and the ruble, according to the poll of 27 analysts.<\/p>\n
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