Major oil producers in the Gulf stand to lose the most in absolute terms from the recent fall in prices, but conservative management of the oil sector means that the region will simply save less. By contrast, the governments of many oil producers elsewhere require oil prices of well over $100 per barrel to sustain their fiscal position. Those with low debt may be able to borrow to make up the shortfall, but highly indebted countries in Latin America – particularly Venezuela – may face spending cuts.
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