Saudi Arabia Faces Economic Crisis Amidst Declining Oil Exports and Aramco Share Value Drop
According to the International Desk of Webangah News Agency, economic expert Salim Al-Jadabi has pointed to a critical economic crisis unfolding in Saudi Arabia. The nation is experiencing a drastic reduction in oil exports, falling from seven million barrels per day to three million barrels, marking the lowest level in nine years. This decline, even with oil prices at $95 per barrel, translates to a daily loss of $400 million, accumulating to $144 billion annually. Al-Jadabi emphasized that lifting the blockade on Yemen would have incurred significantly lower costs for Saudi Arabia.
The kingdom has recently submitted a request for an $8 billion loan, a move that, coupled with its commitments to foreign investment, underscores the depth of its economic distress. To secure these loans, which reportedly exceed $35 billion, Saudi Aramco has intervened. The economic strain is further evidenced by a recent incident where a ship, the Amzan, was targeted near Yanbu, forcing the transfer of oil cargo between vessels at sea. Such disruptions highlight the formidable challenges Saudi Arabia faces in its oil exports.
The Saudi Export Organization has reported that each targeted vessel incurs an insurance cost of $186 million. Major shipping company Maersk has declared it will not conduct any loading operations through the Bab al-Mandab Strait or in waters close to Saudi Arabia. Consequently, oil exports from the port of Yanbu have plummeted by 48% since June. To mitigate some of these export-related issues, Saudi Arabia has been compelled to offer substantial discounts to its customers.
In addition to export challenges, the stock value of Saudi Aramco has fallen from 27 Riyals to 25 Riyals, representing an estimated economic blow exceeding $74 billion. The volume of goods imported through Saudi ports has also seen a substantial decline, decreasing by 40% from 14 million tons in June to 8 million tons.
