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RE: LeoThread 2025-05-11 19:54

in LeoFinance5 months ago

Part 4/8:

As the reality of diminishing oil prices set in, Saudi Arabia grappled with extensive debts stemming from its extravagant expenditures. The once-flourishing projects that symbolized its ambition were increasingly seen as burdens rather than innovations. With oil prices plummeting to around $60 per barrel—significantly lower than the breakeven price of approximately $110 required for budget balance—the kingdom faced a looming budget deficit estimated at $67 billion for the year. This financial strain was compounded by geopolitical dynamics and competition with U.S. shale production, which undermined OPEC's control over global pricing.

The Role of OPEC and Global Oil Markets