Understanding the impact of the oil price war on the Middle East

Understanding the impact of the oil price war on the Middle East

Oil demand is set to contract this year, just as the leading petro-nations Saudi Arabia and Russia locked horns in raising supplies following the U-turn in the OPEC policy deal.. In the longer term, the petro-nations will suffer because their economies and governments require high oil prices.. The global downturn calls for more spending and aggravates the budget holes opened by the oil price decline thereby drying up of petro-dollar revenues.. Already before the oil price sell-off, some companies' access to capital tightened as investors and banks scrutinize oil demand growth under the concern of climate change.. The question for the oil market is what declines faster - supply or demand..