GCC countries face USD bns in foregone energy revenues — and it’s a boon for Algeria

Oil-exporting countries in the Gulf are looking at USD 15.1 bn in foregoneenergyrevenues since the start of the regional conflict due to the near-shutdown of Hormuz. Saudi Arabia has borne the brunt of that figure, accounting for some USD 4.5 bn of the total before pivoting to export more from the Red Sea. Meanwhile, Iraq’s options for alternatives look to be dwindling, as Baghdad’s plans to ship oil through Turkey’s Ceyhan pipeline is being blocked by the Kurdish government.

While the global energy upheaval is ratcheting up the pressure on Gulf exporters, it has been a boon for Algeria, which is emerging as our region’s biggest beneficiary of the surge in crude prices. With Brent rising above the USD 100 mark, the North African country is looking at a narrowed budget deficit, considering its budget assumes oil prices sitting at USD 70 / bbl.

Yeah, but what would Algeria need to balance its books? Oil prices shooting up to around USD 120-125 / bbl, according to analyst estimates.