credit risk capital raising flag, page-46

For those who say oil will stay around $30 pb . How can it possibly be reconciled with Saudi Arabia's need for oil to be $106 pb to balance their budget . At the present rate the loss of income is around $350 bl p.y. They have raided the bond markets for $260 bl , debt markets for $63 bl . Are fighting wars on four fronts and propping up the economies of Egypt Pakistan and Yemen . Eight Saudi Banks have been downgraded to Risky, after the Saudi Government stripped them of $100bl in capitol . Sure they still have big capitol reserves , but the debts they are building at a reckless pace will soon take care of that . A very good article in todays AUS on Venezuela another oil rich country !! and for those going for their calculators , most of the Middle East produces a heavy sour oil , not a light sweet , an can be discounted by as much as $15 pb . Which ever way you cut it , this folly will not last much longer .....