It's Against Sharia To Borrow/Lend Money, Charge Interest -- August 5, 2015

Saudi Arabia plans $27 billion in bond issues. Remember: the Islamic religion does not condone borrowing. The Financial Times is reporting:

Saudi Arabia is returning to the bond market with a plan to raise $27bn by the end of the year, in the starkest sign yet of the strain lower oil prices are putting on the finances of the world’s largest oil exporter. 

Bankers say the kingdom’s central bank has been sounding out demand for an issuance of about SR20bn ($5.3bn) a month in bonds — in tranches of five, seven and 10 years — for the rest of the year.

Previous posts:

• Saudi's production increases 1% month-over-month, after 5-year, $35 billion program to raise production
• the US shale barrel is the swing barrel going forward

To recap:

• before the Iran sanctions, Saudi needed $100 oil to balance its budget
• before the Yemeni war, Saudi needed $100 oil to balance its budget
• before President Obama said Saudi's security was it's own responsibility, Saudi needed $100 oil to balance its budget

For almost the past year, Saudi Arabia has been giving away its oil for $50/bbl.

The Saudis will need $200 oil to make up for the past year of craziness.