Ibrahim Muhammad Badawood

Al-Madina

 

Oil prices have been fluctuating for a month and have recently dropped below $60 a barrel. This sharp slump has its own repercussions on many things, including the Saudi stock market which plummeted below 8,000.



This was followed by stagnation and fears in the real estate market. All of a sudden, rumors about the future of oil started to flow and some people started providing detailed economic analyses about the economic future of the country.



What is really strange is that our society is still waiting for an official to explain the dire economic situation caused by the sharp drop in the price of oil.



People want officials to tell them what will happen now that oil prices have fallen significantly. Oil revenue accounts for 90 percent of our government’s income.



On the other hand, society has the right to know what is going on and whether or not the slump is temporary.



Will prices return to normal? Will we find ourselves in a situation in which we are obliged to use oil reserves to account for the deficit in the budget?



Will such a slump in prices have repercussions on Gulf countries in general? Will these countries resort to selling some of their assets or to borrowing money from global markets to cover government spending?



The questions are many and an official with a strong background on the subject needs to answer them and reassure society.



If they remain unanswered, people without any expertise will continue to interpret what is happening.



Several government agencies have recently promised to take the initiative and explain the situation to people and dispel any rumors on the matter.



However, people are still waiting for an explanation as many believe that what is going on in the country is merely a political or economic war orchestrated by outside players. 



Moreover, shale oil production has risen significantly while the US production of global oil over the past three years has increased by 50 percent, making the United States the largest oil producer in the world.



Silence on the issue should not continue. An official should explain the situation so that our trust is enhanced and the nation’s development does not stop.