Today, Saudi Arabian Airlines announced earlier that it will already start receiving new internal reservations on its official website as of June 1, after the suspension that is currently in effect due to the confrontation of the Corona pandemic emerging in the Kingdom of Saudi Arabia.
Where the sources inside the Kingdom of Saudi Arabia confirmed today, and Saudi media sources stated that the company has already started receiving internal reservations on its website to prevent crowding to reduce the spread of the Corona virus.
It is highly unlikely that the Saudi authorities will return foreign and domestic aviation at this time due to the non-proliferation of the new krona virus so far. No decision has been issued by the government on the return of internal aviation in the Kingdom.
Where the Ministry of Health in the Kingdom of Saudi Arabia announced yesterday, Monday, the registration of 1289 new infections with the Corona virus, bringing the number of infected to 18811 cases, as the total number of illnesses of the injured in the Kingdom of Saudi Arabia to date.
While the ministry said in a statement published by the official newspapers inside the Kingdom of Saudi Arabia, we recorded 174 new cases of coronavirus, and 5 new deaths were recorded, bringing the total deaths to 144 as the total number of deaths from the newly created Corona virus.
Or in terms of the Saudi economy and the latest news of the Saudi economy:
Oil expert Matteo Ozano believes that some oil-dependent regimes such as Algeria, Iraq and Iran may be at risk and could have catastrophic consequences, according to a report in the French newspaper, Le Nouvel Observator, by writer Sarah Dhaifallah.
The writer Sarah Deif Allah said that for the first time in its history, American crude oil prices collapsed last Monday, reaching zero, in the range of about minus $ 37.63 a barrel (it reached minus $ 38). The price of a barrel had reached about sixty dollars at the beginning of this year, but it soon declined.
She added that the collapse of demand - due to the Corona virus and the diminishing capacity of oil storage - together constituted the factor that explains this massive drop in crude prices, and asked, in light of this, the geopolitical consequences of this rapid price drop on the oil exporting countries.
And on the economic risks that may result from many oil-exporting countries having thousands of barrels, whose storage requires a high cost, expert Matteo Ozano said that the entire world is losing huge money, and that all major producers have reached levels below the expected budget break-even price, according to what Conveys the Observator Report.
The most affected
Iran, Iraq, Venezuela and Algeria are among the countries hardest hit by the drop in oil prices, because in some cases, oil is almost the only supplier they have, and for this reason we should pay close attention to what is happening in these countries, especially in Algeria, the newspaper says.
And on the question posed by the French newspaper about whether such a situation had previously occurred in the past, the expert in the field of oil explained that the only precedent comparable was the incident of oil abundance in the eighties, where it witnessed a sharp decline in oil prices, which reached ten dollars in 1986 .
After the October war and the first oil shock, then the Iranian revolution and the second oil shock, a recession led to a great abundance of oil in the global market, and as a result it undermined the resources of the oil states of a large number of producing countries, and this caused heavy geopolitical consequences.
In this context, two events come to mind, namely the collapse of the Soviet Union and the civil war in Algeria in the nineties of the last century, according to the same source.
One of the main factors in the collapse of the Soviet economy was due to the abundance of oil in the 1980s, the period during which oil drying, which is the only source of foreign currency, occurred due to the collapse of the price of a barrel starting in 1985, according to the oil expert.
The same is true for Algeria - the same source continues - where the economic factor was one of the causes of the regime crisis that led to the civil war in the nineties. Overnight, it became impossible to finance the massive investments and development plans drawn up by the generals, and it was no longer possible to purchase the social ladder, the same problem that is occurring again at the present time.
History repeats itself
On what happened during the years of oil abundance in the 1980s, the expert replied that in the middle of the Cold War, slowed growth led to a surplus in oil markets, and was reinforced by a deliberate strategic geographic game from the US State Department at the time, as the Reagan administration encouraged the Saudis to increase production to the maximum Its borders, and dumping the market, to exacerbate the collapse of oil prices, and this has caused a lot of damage to the American industry, at the same time that the Afghan war destroyed the Soviet budget.
Regarding the impact of the current situation on geopolitical instability, oil expert Matteo Ozano notes that the Middle East is in an explosive situation, and it is clear that a drop in the price of a barrel will increase the possibility of tension in this region, at a time when Iran ignores the provocations of US President Donald Trump.
The oil expert believes that Iran may close the Strait of Hormuz under the influence of economic sanctions and the consequences of the Corona virus, which could lead to cutting the global economy’s artery.
Resisting the crisis
And about those who can better resist this crisis, the oil expert expressed his belief that the Saudis can show better resistance than others, because the cost of production is very low and they have large foreign exchange reserves.
Russia - which suffered from low oil prices in 2015 - is on the alert for this war, as strategists in the Kremlin learned a lesson from what happened in the Soviet Union in the 1980s, so when they fought the oil price war in early March they were ready for it, They rejected Saudi Arabia's request to curb production brakes, the oil expert says.