Saudi Arabia announced its budget for next year on Monday with a huge deficit that reflects the sharp fall in oil prices. The deficit is the highest in the history of Saudi Arabia, the world’s largest oil exporter.
The average price of Brent crude is on track to be the lowest in 14 years. The price hit a low of just above $35 last week, and some analysts predict it could go as low as $20, before stabilising somewhere above $50 in the new year.
So, how low will oil prices fall? And how will producers cope?
Abdullah Baabood – Director, Gulf Studies Center, Qatar University.
John Sfakianakis – Economist and former adviser to the Saudi government.
Jaafar Altaie – Founder and managing director of Manaar Energy Group.