The world’s crude producing countries are getting crushed by low prices

Significant budget surpluses are twisting into deficits, and generous social programs are now being replaced with austerity and cuts. Crude oil has collapsed below $37 a barrel, in comparison to over $100 in the middle of 2014.

Issues such as the international oil glut, OPEC’s determination to pump like there is absolutely no tomorrow, and decreasing demand from China along with other countries are continually pushing oil prices to new lows.

Listed below are the five major countries hit worst the by this crisis.

Venezuela

Venezuela possesses the world’s biggest oil reserves. Its government has for many years used the profits it makes supplying oil to pay for retirement benefits, medical treatment, and cultural benefits, as well as to subsidize housing and grocery chains.

The bad news is the overall economy is about to collapse. The cost of living soared over 150percent in 2015, which is expected to rise over 200 percent next year. A government entity struggles to pay its bills, and food and even basic necessities are in short supply.

The economic recession has resulted in political turmoil. Earlier this December, the country’s opposition received an absolute majority in an election for the first time in 17 years.

Saudi Arabia

Oil makes up about 75percent of Saudi Arabia’s revenue, and now the country’s affordability is getting slammed. The government ran an almost $100 billion budget deficit in 2015 and declared tough austerity steps for next year.

“That’s a reminder that even the world’s lowest-cost oil producer relies on high[er] prices to balance its budget and current prices don’t come anywhere close,” Kit Juckes, global strategist at Société Générale, said.

Nigeria

Africa’s largest oil producer is in serious trouble. Oil accounts for approximately 75 percent of Nigeria’s regime revenue, and pretty much 90 percent of the country’s exports.

The plunge in oil rates has left the Nigerian government struggling to pay its expenditures. Local media reported that in some areas, state employees haven’t even received salaries in months. The country is being affected by power cuts and fuel shortages.

Russia

Up to 50 percent of Russia’s government revenue comes from gas and oil exports. The dive in oil prices came when Russia was already suffering from Western economic sanctions added on Moscow over its involvement in the crisis in Ukraine.

Russia’s budget is depending on an oil price of $50 per barrel, but oil is trading close to $37. The International Monetary Fund (IMF) expects that Russia’s GDP is going to shrink by 3.8 percent this year and by another 0.6 percent in 2016.

Iraq

Reduced oil prices are crushing Iraq’s budget when the nation desperately depends on this source of income to fund its war against the Islamic State (ISIS).

Iraq has been pumping the highest amounts of oil in 2015, but the boost in production hasn’t paid for the drop in prices. The country has huge crude oil reserves, but it needs a lot more investment in infrastructure to utilize them.