Oil price – Desperate oil states to freeze funding – Süddeutsche.de

• The energy and oil ministers from Russia, Saudi Arabia, Venezuela and Qatar have considered the low price of oil and an agreement was reached.
• The cheap oil results in producing countries around the world to dramatic developments.

From Vivien Timmler and Jakob Schulz

The worse off states, the greater is often their willingness to diplomatic talks. The ever-declining oil price has now triggered such a mechanism in many countries. Russia’s economy is in bad shape, Venezuela is facing a dramatic crisis. Even Saudi Arabia’s state budget has because of cheap oil major gaps on.

Against this background, this Tuesday the energy and oil ministers of these states discuss the oil price. The roundtable is considered an expression of the efforts of the oil producing cartel Opec to counteract the drop in prices for oil, together with non-OPEC members such as Russia. At the end of the meeting is an agreement: The production should be frozen at the level of January. “The meeting was successful,” said Saudi Oil Minister Ali al-Naimi. After the announcement of the meeting and the agreement in principle, oil prices rose noticeably. However,

The agreement, according to the ministers dependent on other producing countries within and outside the Opec join her. And that would be difficult. Currently Iran is pressing as big Opec conveying state back to the world market. After the end of the sanctions the country has announced plans to increase the oil production greatly. On Monday, a tanker had left oil towards Europe, the first in three years.

But why are many oil states so desperately? The case Russia

The Russian government is due to the low price of oil under extreme pressure. A large proportion of the state budget denies the country from the oil revenues. Because of the falling oil price Russia had to reduce even its budget drastically recently. Also the Russian economy as a whole is in bad shape: It is 2015 by 3.8 percent

The ruble has since the beginning of the year against the euro and dollar almost six percent lost its value, even in the past year and a half. more than half of its value. Citizens also get the oil price decline now feel: Food prices have mostly doubled last year, many people can only afford the most necessary things of everyday use

Russian oil price crashes – and for Russia concerning

Many citizens can only afford the most necessary things. But the problem is not the sanctions.

Venezuela on the brink

is even worse in Venezuela. The government had in January proclaimed the economic emergency. The country depends largely on the oil export. Besides oil is virtually nothing more promoted, produced or exported. But in the third quarter 2015, the economy contracted by 7.1 percent. According to official figures, inflation is now already at 141.5 percent.

The low oil price has implode the Venezuelan state budget. The state can no longer be maintained as its generous subsidies in gasoline prices. Reports pile up, under which residents in the hospital even need to bring their own medication. Many stores do not offer more goods, people lacking basic necessities. Since the government has traditionally bought the affection of citizens with subsidies, the economic crisis may turn into a political crisis.

Saudi Arabia under pressure

The cheap oil also in Saudi Arabia a gap torn in the state budget. The UK has made strong economically in the past dependent on oil. Almost three-quarters of its revenue generated Saudi Arabia out of business with the oil, strictly speaking, from the taxation of profits of oil sales.

Saudi Arabia recorded in 2015 with a budget of € 240 billion and an economic output about 600 billion to a deficit of around 90 billion euros. Also, the UK maintains its citizens about subsidies the price of petrol in good spirits – in the long run, the government should not hold the

oil – the high cost of cheap oil