As the price of oil extends a free fall that began this summer, countries around the world that rely on oil revenues are bracing for an imminent economic and budget hit. The drop is widening budget gaps in the Gulf states like Saudi Arabia, the United Arab Emirates, Qatar, Oman and Bahrain that rely heavily on oil to pay government services.
With oil and gas production accounting for some 70% of Russia's government spending, Moscow also faces a big shortfall—after budgeting based on $100-a-barrel oil for 2015. Russia's economic growth was already slowing before the plunge in oil prices. Trade sanctions imposed by the U.S. and Europe—in response to the invasion of the Ukraine—will further crimp growth and government spending.
The impact of budget gaps among big producers like Saudi Arabia and Russia, though, will be softened somewhat by large reserves built up during boom years. But a protracted era of cheap oil would force them to undertake serious belt-tightening.
Note: Click on a country to see what % of it's GDP is derived from crude oil.
Courtesy of CNBC