Oil market is key to the middle east economy--- lower prices hurt their budgets
Ovunc Kutlu 20, Chief Correspondent at English News, Americas and Economy Desks at Anadolu Agency, Nuran Erkul Kaya, Energy and climate journalist at Anadolu Agency, 04/04/2020, “Low oil prices drag Middle East economies to collapse”, https://www.aa.com.tr/en/economy/low-oil-prices-drag-middle-east-economies-to-collapse/1792024#:~:text=Low%20prices%20seriously%20threatening%20most,higher%20prices%20to%20balance%20budgets&text=The%20low%20oil%20price%20environment,crude%20oil%20production%20and%20exports. //IS
The low oil price environment in the global market is dragging the Middle Eastern oil-producing countries to collapse, whose economies are strongly dependent on crude oil production and exports.
Due to the novel coronavirus (COVID-19) keeping global oil consumption weak, and the oil price war between Saudi Arabia and Russia, crude oil prices are fluctuating below $30 per barrel since March 6 when OPEC and non-OPEC nations failed to reach an output curb deal.
Low crude prices are seriously threatening most oil-producing countries in the Middle East and North Africa (MENA) who need higher oil prices to balance their budgets.
Nigeria needs a breakeven price of $144 per barrel of Brent crude on average to balance its government balance this year, while Bahrain requires $96 a barrel, according to data from global rating agency Fitch Ratings.
Saudi Arabia, OPEC heavyweight and the world's largest crude exporter need a breakeven of $91 per barrel, while Oman needs $82 a barrel, Abu Dhabi requires $65 per barrel and Qatar needs $55 a barrel, the data shows.