Not all OPEC nations are wealthy and may climate a storm just like the coronavirus pandemic with oil costs additionally sliding into damaging territory, nonetheless briefly.
OPEC cartel chief Saudi Arabia is chopping subsidies and elevating taxes nevertheless it additionally has huge international foreign money reserves that may see it by the disaster.
But that isn’t the case for the likes of Oman and Bahrain, which have slashed budgets, although they might get assist from Saudi Arabia and the United Arab Emirates.
Our focus is these resource-rich nations which have needed to flip to the International Monetary Fund and people who haven’t, as oil costs hover simply north of $30 a barrel.
Algeria – The North African nation has seen its debt soar to 45 % of GDP from simply 26 % in 2017. It had primarily based this yr’s austerity funds on oil costs of $50 a barrel.
Angola – In 2018, Africa’s second-biggest oil producer obtained a $3.7bn mortgage from the IMF and could possibly be banging on its doorways once more. It depends on the sale of crude for 65 % of its tax income.
Ecuador – Creditors have given the nation a debt fee vacation. But it may nonetheless default on its $17bn debt. It additionally obtained an IMF mortgage of greater than $600m.
And then there may be Africa’s largest oil producer, Nigeria, which final month obtained approval for a $3.4bn emergency IMF mortgage. The nation relies on oil for 90 % of its export earnings. With crude costs cratering, it has little room to service debt.
Kola Karim, chief govt of the Shoreline Group, which has holdings in numerous Nigerian oil ventures, shares his ideas with Al Jazeera.
Lithium vs Oil
This is the stuff of science fiction.
Wuhan University has developed a plasma thruster, a kind of propulsion engine, that might probably energy the planes of tomorrow, and produce emissions-free flying a step nearer.
The pandemic has lowered world consumption of oil by a couple of third – with grounded jet airways guzzling at the least 5 million barrels of oil every day.
The coronavirus could be the push inexperienced vitality wants. It ought to come as no shock that decline in fossil gasoline utilization has led to a fall of eight % in world carbon dioxide emissions, in line with the International Energy Agency.
Andy Leyland, head of strategic advisory at Benchmark Minerals, discusses whether or not lithium, the stuff that powers a lot of our electrical automobiles, can emerge as a winner from this disaster.
Saudi Arabia’s ‘sports activities washing’
Newcastle United could possibly be within the fingers of latest homeowners very quickly.
But the customer comes with a whole lot of baggage. Saudi Arabia’s Public Investment Fund will personal 80 % of the English Premier League membership.
Saudi Arabia’s human rights document, the killing of journalist Jamal Khassoggi and the nation’s alleged theft of Middle Eastern Premier League rights may derail the $375m deal.
Amnesty has accused Crown Prince Mohammed Bin Salman of utilizing the glamour and status of the Premier League to cowl up actions which might be deeply immoral.
Simon Chadwick, director on the Centre for the Eurasian Sport Industry, feedback on Saudi Arabia’s “sports washing”.
Source: Al Jazeera News