More Evidence That Saudi Is Experiencing A Huge Cash Crunch -- January 25, 2017

Two data points or recurring themes regarding Saudi Arabia:

• the Prince Salman plan is to jump-start huge petrochemical plants
• Saudi Arabia is burning through cash reserves

Back on September 6, 2016, it was noted that Saudi Arabia was considering canceling $20 billion worth of projects. 

More evidence today that Saudi is running short of cash: Reuters is reporting that Saudi Aramco shelves plans for venture with Malaysia's PETRONAS. Data points:

• would have been a joint venture
• would have been a $27 billion refining and petrochemical project in Malaysia
• lots of excuses at the linked article
• decision comes at a time when PETRONAS is struggling with the slump in oil prices
• PETRONAS has cut back elsewhere
• PETRONAS has yet to make a final investment decision (FID) on a controversial $27 billion LNG project in Canada

Note: this is a two-fer of bad news for Saudi. A petrochemical plant, if successful would generate cash. A refinery would provide a "customer" for Saudi oil. Saudi, canceling this joint venture, loses both.