Saudi Arabia Said to Delay Contractor Payments as Oil Slumps

[tomm2thumbs]

Source: Bloomberg

Companies working on infrastructure projects have been waiting for six months or more for payments as the government seeks to preserve cash, the people said, asking not to be identified because the information is private. Delays have increased this year and the government has also been seeking to cut prices on contracts, the people said. <snip>

The lower price of crude -- it’s fallen by about half in the past 12 months -- coupled with the kingdom’s spending plans, will leave Saudi Arabia with a budget deficit exceeding 400 billion riyals this year, according to the International Monetary Fund. The aggregate deficit for 2015 to 2017 is likely to exceed $300 billion, according to a report by HSBC. The government has ordered a series of cost-cutting measures, including a freeze on new construction contracts and bans on buying new vehicles or furniture, two people with knowledge of the matter told Bloomberg earlier this month. <snip>

The country is now storing record amounts of crude amid a decline in shipments. Exports dropped to 7 million barrels a day in August from 7.28 million in July, while commercial crude stockpiles rose to 326.6 million barrels, the highest since at least 2002, according to data posted on the website of the Riyadh-based Joint Organisations Data Initiative.



Read more: http://www.bloomberg.com/news/articles/2015-10-19/saudi-arabia-said-to-delay-contractor-payments-after-oil-slump

---

[wordpix]

1. wow the Saudis have to tighten their belts for once

Bring on the solar and wind and EV's!

[Demeter]

2. Dump the royals on their asses, naked

[FlatBaroque]

4. They are a crime against humanity nt

[uawchild]

3. how's that oil-weapon working out for ya, King Salman?

The Kingdom of Saudi Arabia has been flooding world oil markets with cheap oil, mostly to crush competing producers who have been cutting into their market share. Most notable of these is the US Shale Oil industry, which has significantly higher operating costs than Saudi oil production.

Isn't it time that the dictator, yeah, he's a dictator, of the undemocratic theocratic "kingdom" that oppresses women, beheads gays and bans the open practice of every other religion be given a cute knick name like we gave Pootie Poot Putin? Isn't that what our media does to dictators, mock them? The mocking comes right before the regime change if I remember correctly. So lets get the ball rolling to remove the odious "royal" family.

Calling him Sal make him sound too approachable... lol Sally-boy? nah too Jersey Shore. lol I am bad at this.

oh oh I got it! Slick Sal. lol get it? as in OIL slick. lol heh, I did say I was bad at this



"Slick" Sal, aka King Salman of Saudi Arabia

[winstars]

5. Alfred E Neuman??? "What me Worry???"

[LibertyLover]

7. Good grief - does he use Just for Men

for beards and mustaches? Not to mention the eyebrows. That just isn't a natural color.

[dembotoz]

6. long time to wait for payment

contractors have bills too.