The oil price wars, partly initiated by Saudi Arabia against competitors like oil producers in the Bakken oil fields, have dropped prices more than 50% from their peak. With current prices at about $44, even Saudi Arabia’s government is now operating at a deficit to the point that they are having to borrow money to pay for social services. Saudi Arabia’s breakeven price is $106. They aren’t alone, few, if any, countries that rely on oil revenues are below their breakeven price. A few of them have decades of financial reserves, but most only have a few year’s of financial reserves. Just like with the oil, they’re tapping those resources, and also going into debt; a significant change for them. The expectation was that oil prices would only stay down for a short period, but it looks like the price war will continue – putting previously rich countries into debt.
(Click on the chart for the link.)