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Saudi billionaire Alwaleed warns over impact of falling oil price

Saudi billionaire Alwaleed warns over impact of falling oil price

October 14, 2014 4:57 pm

Simeon Kerr

A Saudi billionaire investor has sounded the alarm over the potential impact of falling oil prices on the Gulf kingdom's economy.

In an open letter to Saudi ministers posted via Twitter, Prince Alwaleed bin Talal al-Saud expressed his "astonishment" at comments made by Ali al-Naimi, the oil minister, who reportedly played down the impact of oil prices falling below $100 a barrel. Prices have since fallen below $88 a barrel, or a quarter since June.

Prince Alwaleed, noting the kingdom's 2014 budget was 90 per cent dependent on oil revenues, said belittling the impact of lower prices was a "catastrophe that cannot go unmentioned".

The prince expressed similar concerns last year over the rise of shale oil, which, with weakening Asian demand, has contributed to the rapid slide in oil prices – despite geopolitical uncertainties in Iraq, a major producer...

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Read more at Financial Times: http://www.ft.com/intl/cms/s/0/4355edac-53ac-11e4-8285-00144feab7de.html?siteedition=intl#axzz3GDBB6Gnl