GOOD! Riyadh Is Reeling From Bargain Oil Prices.

When you live by the price of crude, it follows that you also die by it. That’s what the oil-soaked kingdom of Saudi Arabia is experiencing, and a new report from Wood Mackenzie shows that of all of the Middle East’s petrostates, it’s the Saudis that are suffering the most as a result of the collapse in crude prices over the past 29 months.

According to this new report, the Saudis fiscal deficit is now equivalent to a whopping 20 percent of the country’s GDP, and goes on to show that if Riyadh wants to balance its budget this year, it would need oil prices to hit $92 per barrel.

Barring some major supply disruption, that’s not going to happen. Oil prices are currently trading at exactly half of the reported Saudi breakeven price, and even the most optimistic readings of the effects of a potential OPEC production cut later this month only predict prices rebounding to somewhere in the range of $65. And let’s not forget that if and when that happens, hungry American shale companies will be pouncing on the opportunity to ramp up their own output, necessarily denting the impact of OPEC’s cuts.

Related: Why OPEC Fears Donald Trump.