Global oil shocks negatively impact Saudi trade balance, posing economic challenges.
The study looked at how oil shocks affect Saudi Arabia's trade balance. They used a special model to analyze data from 1991 to 2021. The results showed that global oil production shocks hurt the trade balance more than Saudi Arabia's own oil production shocks. Oil price shocks had the biggest impact, especially when prices were low and unstable. The effects of oil shocks changed over time, with the most significant impacts during and right after global shocks.