Oil prices are falling in the Arab world, which is struggling to cope with the impact of a plunging oil price.
As a result, Israeli oil exports to OPEC member states have dropped by nearly a quarter in just four months.
According to the Israeli Energy Information Administration, Israel exported $3.5 billion worth of oil last year to OPEC countries, a drop of 40% from the $9.2 billion it exported to the group last year.
Saudi Arabia is Israel’s biggest oil customer, but its share of Israeli exports to the rest of the world has been declining.
Israel has a $1.5 trillion oil industry, but with the OPEC price dropping, the market is expected to continue to decline.
The Saudi kingdom is one of the few Arab states that is able to afford oil imports to Israel, and the government has been working to increase its exports to Israel in the wake of the drop in oil prices.
Israel’s energy minister said last month that it was possible that Israel could be able to export oil to the United Arab Emirates as early as this month.
“We are talking about exports, not imports.
But we are planning to make a decision in the next few days,” Israeli energy minister Naftali Bennett told Israeli media.
However, with the price of oil in the $45-per-barrel range, that plan has proven to be impossible.
Israel is also experiencing an increase in oil demand in the United States, and its oil exports are expected to drop again next month.
The State Department says that the oil price drop is having a major impact on Israel’s ability to meet international commitments, which include oil-related security agreements.
“In the event that the price is higher than $50 per barrel, there is no possibility of importing oil,” said Deputy Assistant Secretary for Political Affairs Michael Anton.
The United States has also cut off Israeli oil supplies to Iran, the largest oil importer in the Middle East, which has been a major concern to Israel.
“Israel is one country in the region that is worried about the potential for Iran to use its oil in their nuclear program,” Israel’s former energy minister Roni Alsheich said on Monday.
Iran has threatened to shut down the country’s oil industry if it loses the war in the war-torn country.
“The price of crude oil has plummeted, and Iran is now using its crude in a range of activities,” Alsheikhs comments come amid a diplomatic thaw between the US and Iran.
The oil market is a complex one, and analysts say the drop is a big blow to Israeli energy producers.
“As soon as we see that we are getting a drop in the price, we are worried, but we will take it,” Al Sheikhs said.
Israel, however, is not the only Middle Eastern country struggling to meet its oil needs.
The Middle East is the region’s largest exporter of crude, and has long been in a war with Iran, which was the region first to develop a nuclear weapons program.
However the two countries are at odds over their future nuclear cooperation.
“A nuclear agreement between Iran and the US will be the first one that we will have with Iran since the deal between the two,” Al Sheikh said.
The two countries signed a deal in 2015 that included the lifting of sanctions against Iran, and many of their most important trading partners in the West Bank, such as the European Union, have also been able to import Iranian oil.
The sanctions were lifted in January, but the lifting process took longer than expected due to concerns about the economic impact.
Israel and Iran are not the first countries to suffer from oil prices dropping, but it is the first time it has had to go through this kind of economic downturn.
In 2013, the European Central Bank cut its benchmark rate to record lows in an attempt to prop up the global economy.
The cut had the effect of cutting oil imports by almost half, and a sharp decline in global crude prices.
However in the same year, oil prices were also rising as an OPEC member.
The International Monetary Fund has warned that oil prices could crash as high as $60 per barrel in the coming months.
“If the world oil prices continue to fall below $50 a barrel, we could see a massive drop in global consumption and economic activity,” IMF Managing Director Christine Lagarde told CNBC on Monday in an interview.