ML-Implode News - Saudi riyal in danger as oil war escalates

Dr Alsweilem said the country does not have deep enough pockets to wage a long war of attrition in the global crude markets, whatever the superficial appearances. Concern has become acute after 12-month forward contracts on the Saudi Riyal reached 730 basis points over recent days, the highest since the worst days of last oil crisis in February 1999.
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The Saudi government may have unveiled an austerity package of spending cuts and increased taxes, and be looking to slash electricity and water subsidies for the wealthy. But Riyadh has to tread with care. The country's cradle-to-grave welfare system is what keeps a lid on dissent and binds the country's fissiparous tribal polity.

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Saudi riyal in danger as oil war escalates