Some oil producers, such as the UAE and Kuwait, should be able to easily weather a period of low oil prices. But a sustained decline in prices would be a bigger challenge for Saudi Arabia, which would need to tighten fiscal policy, and producers with weak balance sheets such as Nigeria and Angola. For most EMs, which are oil importers, lower prices provide small but welcome relief in the form of improved terms of trade, lower inflation and a bit more room for central banks to loosen monetary policy.
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