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Al-Waleed Bin Talal: Saudi dependence on oil is dangerous

November 5, 2014 at 5:09 pm

Saudi Prince Al-Waleed Bin Talal Bin Abdulaziz Al-Saud said on Tuesday that the decease of crude oil prices to less than $80 per barrel proved that Saudi dependence only on oil revenues is “dangerous”.

Speaking to journalists in Jeddah, he said: “It is clear that the reduction of crude oil prices to less than $80 per barrel proved that we were right when we demanded the government have other income resources.”

He added: “Saudi Arabia is 90 per cent dependent on oil revenues and this is not a good choice. It is wrong and, in fact, is dangerous.”

The prince, who invests in different sectors including international media and hotels, made his remarks after American crude oil reached the lowest price in three years – $75.84 per barrel and Brent oil became $82.02, its lowest price in four years.

Prices started to fall on Monday after news that Saudi had decreased the sale prices of its oil to the US, likely trying to compete with American oil shale.

Saudi Arabia is the largest oil exporter among the OPEC countries. IMF Director Christine Laggard warned that the Gulf States, which depend on oil, would face a shortfall in their budgets should the decrease in oil prices continue.